CEPR/University of Amsterdam joint workshop on 'Micro Foundations for Macro Finance Research'
CEPR / CIFRA Joint Workshop on 'Micro Foundations for Macro Finance Research'
CEPR, the Macro Finance Risk Center and CIFRA at the Univesity of Amsterdam recently hosted a joint workshop on the topic of 'Micro Foundations for Macro Finance Research'. Organised by Viral Acharya (NYU Stern and CEPR) and Enrico Perotti (UVA and CEPR), the workshop focused on better micro foundations for macro finance research. The aim was to brainstorm on methodological issues.
The idea was not to present individual paper presentations, but rather to debate a series of short presentations, or “provocations”, Discussion leaders offered a synthesis of general modeling issues rather than specific solutions, which hinted at possible developments for the future whilst offering some building blocks without burden of proof.
A goal of the workshop was to avoid taking DSGE modeling as a starting point and fit financial frictions into it, but start rather from first principles, eg, how can micro-models of financial intermediation be aggregated up to provide new workhorse models for macro-finance?