On the Structural Interpretation of the Smets–Wouters “Risk Premium” Shock

B-Tier
Journal: Journal of Money, Credit, and Banking
Year: 2015
Volume: 47
Issue: 2-3
Pages: 511-516

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article shows that the “risk premium” shock in Smets and Wouters (2007) can be interpreted as a structural shock to the demand for safe and liquid assets such as short‐term U.S. Treasury securities. Several implications of this interpretation are discussed.

Technical Details

RePEc Handle
repec:wly:jmoncb:v:47:y:2015:i:2-3:p:511-516
Journal Field
Macro
Author Count
1
Added to Database
2026-01-25