Higher-order dynamic effects of uncertainty risk under thick-tailed stochastic volatility

HIGHLIGHTS

  • who: Xiao-Li Gong from the School of Economics, China have published the research work: Higher-order dynamic effects of uncertainty risk under thick-tailed stochastic volatility, in the Journal: (JOURNAL)
  • what: The authors investigate the variations in macroeconomic transmission caused by the existence of uncertainty risk in different economic environments, such as different inflation levels and economic states.
  • how: This paper introduces the shock that follows a thick-tailed Student`s into a high-order approximate dynamic general equilibrium (DSGE) model with Epstein-Zin preference to betu2011 ter analyze the dynamic effect . . .

     

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