Financial business cycles. Review of Economic Dynamics

Description

The requirement is to write a review of the following key journal article: Iacoviello, M., 2015. Financial business cycles. Review of Economic Dynamics, 18(1), pp.140-163. It is part of a special issue ‘Money, Credit, and Financial Frictions’ in Review of Economic Dynamics Journal. The review must focus and be written on the above-mentioned key journal article. But, place the paper by Iacoviello (2015) in the context of other related literature. Use secondary literature, for source of context and critique (But, use recent literature, up until now and relate it to the key journal article that needs to be reviewed.). The review must: 1. Explain the motivation for the paper – Why is the author writing this paper? 2. Review the arguments of the paper 3. Identify the main claims of the paper 4. Assess the extent to which the claims are justified 5. Explain whether you identify any weaknesses in the paper 6. Consider what interesting questions follow on from, or are left unanswered by it. The review should have two key elements – 1) descriptive and 2) evaluative. The first three bullet points above have descriptive expectations. Please do it succinctly/compactly, focus on most important dimensions. Accurately and in own words. Descriptions should have stage-setting and characterisation of results. The last three bullet points above should be of evaluative nature. It is important to consider how the paper can be improved. Are the any logical flaws? Restrictive assumptions, over-generalisation from results to conclusions, inappropriate or questionable modelling? The review also needs to answer the following: 

How is the Iacoviello (2015) paper original? What is the contribution? Where does the study fit in? What’s been done before and after? Consider publications that cited Iacoviello (2015). Talk about the model presented, data and sources. Implementation – estimation strategy. Include details of modelling (What are the agents in the mode? What do they maximise? What are the constraints? Compare the equations of the model to other authors). Furthermore, include critical evaluations. Judgements made about the paper should be justified, by explaining support for them and reasonable.