Luis Herrera Bravo - Expectations and policy in DSGE models

Louvain-La-Neuve, Mons

16 septembre 2024

13h

TEAMS

 

La Rectrice de l'Université catholique de Louvain fait savoir que

Luis Herrera Bravo

soutiendra publiquement sa dissertation

Expectations and policy in DSGE models

pour l'obtention du grade de Doctorat en Sciences économiques et de gestion

Lien Teams

Meeting ID : 324 082 183 561                   Password : ZFRqWb

 

 

Abstract

This thesis focuses on the analysis of two main independent issues: (i) the characterization of expectations in structural models, and (ii) the role of borrower-based macroprudential (BBM) policies in building up financial resilience. The analysis on agents' expectations is divided into two chapters. The first assesses the empirical importance of future economic events that agents expect to be realized. More precisely, it focuses on the role of financial frictions in the origination and transmission of the effect of these types of anticipated (news) shocks. The second chapter analyzes the implications of relaxing agents rationality for the transmission mechanism of news shocks. Regarding the analysis of BBM policies, a non-linear DSGE model that allows to assess the cost and benefits of such policies is developed. The model explicitly incorporates credit demand and credit supply frictions allowing a comprehensive analysis of these policies on both households and banks resilience. Both questions (i) and (ii) are mainly analyzed through the prism of DSGE models. Hence, as an introductory chapter to motivate the use of such models, I show that DSGE models are well-suited to address these questions.

Membres du jury

Prof. Luca Pensieroso (UCLouvain), co-promoteur, secrétaire du jury
Prof. Jesus Vázquez (UPV/EHU), co-promoteur
Prof. Francesca Monti (UCLouvain), présidente du jury
Prof. Javier Andrés (UV), évaluateur externe

Prof. Miguel Casares (UPNA), évaluateur externe
 

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