This paper sets up and estimates a structural model of Australia as a small open economy using Bayesian techniques. Unlike other recent studies, the paper shows that a small microfounded model can capture the open economy ...

In models where privately informed agents interact, agents may need to form higher order expectations, i.e. expectations of other agents' expectations. This paper develops a tractable framework for solving and analyzing ...

An affine asset pricing model in which agents have rational but heterogeneous expectations about future asset prices is developed. We estimate the model using data on bond yields and individual survey responses from the ...

This thesis consists of three chapters on topics in macroeconomics and finance. In the first chapter, I use texts from corporate filings of US companies to investigate if liquidity shortages that occurred during the late-2000 ...