Skip to Main content Skip to Navigation
New interface
Conference papers

Risk Aversion in the Euro area

Abstract : We propose a New Keynesian Dynamic Stochastic General Equilibrium (DSGE) model where a risk aversion shock enters a separable utility function. We analyze five periods, each one lasting twenty years, to follow over time the dynamics of several parameters (such as the risk aversion parameter), the Taylor rule coefficients and the role of this risk aversion shock on output and real money balances in the Eurozone. Our analysis suggests that risk aversion was a more important component of output and real money balance dynamics between 2006 and 2011 than it had been between 1971 and 2006, at least in the short run.
Complete list of metadata

Cited literature [30 references]  Display  Hide  Download
Contributor : Jonathan Benchimol Connect in order to contact the contributor
Submitted on : Monday, July 2, 2012 - 4:36:58 PM
Last modification on : Friday, April 29, 2022 - 10:12:36 AM
Long-term archiving on: : Wednesday, October 3, 2012 - 3:18:44 AM


Files produced by the author(s)


  • HAL Id : hal-00713669, version 2



Jonathan Benchimol. Risk Aversion in the Euro area. 29th GdRE Annual International Symposium on Money, Banking and Finance, Jun 2012, Nantes, France. ⟨hal-00713669v2⟩



Record views


Files downloads