Macroeconomic fluctuations and asset prices

Here is a study I did with the help of Prof. Christian Hellwig from Toulouse School of Economics, about economic models of macroeconomic fluctuations and asset prices. I perform a review of the benchmark models with financial frictions and then propose a new model with additional frictions. I find that the benchmark models explain some of the output and price fluctuations by small aggregate shocks (to productivity, income or else). However, it is difficult to explain the magnitude of the asset price fluctuations observed in markets.

The paper:
https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B1Wlp2QVrYS5MWFjMzk3YzYtNTJlMC00NDVkLTliNzgtNjFkYjkzZTQyOTVl&hl=en_US

The presentation (attended by Profs. Franck Portier and Roberto Pancrazi):
https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B1Wlp2QVrYS5NGQxOTQxYjgtOGY2MC00MjMwLTg4ZGYtZTQzNTg3MjMwYTE0&hl=en_US

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