Professor Aruoba Awarded NSF Grant

Professor Boragan Aruoba from the Department of Economics and Professor Frank Schorfheide from University of Pennsylvania won a three-year $528,000 grant from the National Science Foundation to work on a research program titled "Monetary DSGE Models: Advances in Theoretical Modelling and Econometric Analysis". Their planned research will include (1) characterizing the properties optimal monetary policy when the lower bound of zero on nominal interest rates is taken into account, (2) developing an estimable monetary DSGE model in which financial shocks can disrupt the exchange of goods and use the model to assess monetary policy in crisis periods and (3) developing a toolkit for estimation and inference in nonlinear models.