The country risk premium predicted by the dynamic real business cycle models in emerging markets is procyclical, whereas it countercyclical data. This paper proposes a model which time-varying emerges endogenously through variant of Bernanke–Gertler–Gilchrist financial accelerator mechanism. estimated can account for volatility and countercyclicality as well other key moments. Time-varying unce...

There are two contracting viewpoints concerning the explanation of observed fluctuations in economic and financial markets. According to the first view (Newclassical) the main source of fluctuations is to be found in exogenous, random shocks to fundamentals. According to the second view (Keynesian) a significant part of observed fluctuations is caused by non-linear economic laws. Even in the ab...

Physicists in the last few years have started applying concepts and methods of statistical physics to understand economic phenomena. The word "econophysics" is sometimes used to refer to this work. One reason for this interest is the fact that Economic systems such as financial markets are examples of complex interacting systems for which a huge amount of data exist and it is possible that econ...

Today export diversification has become one of the most important economic objectives of development strategies in the developing countries. For various reasons, such as preventing instability in export prices of primary products in global markets, reducing fluctuations in exchanges of them compared with industrial goods, producing dynamic benefits resulted from exporting various goods and incr...

there are various ways for estimating velocity of money in economic literature and each has its own specific weaknesses and strengths. particularly, since a great deal of financial innovations and changes have recently taken place affecting the velocity of money, many traditional methods can no langer calculate the equilibrium velocity of money, and they are no longer dependable from the econom...