most citedEconomic Crises in a Model with Capital Scarcity and Self-Reflexive Confidence

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q-fin.GN2019

Confidence Collapse in a Multi-Household, Self-Reflexive DSGE Model

Federico Guglielmo Morelli, Michael Benzaquen, Marco Tarzia +1

We investigate a multi-household DSGE model in which past aggregate consumption impacts the confidence, and therefore consumption propensity, of individual households. We find that…