Cozzi, GuidoGuidoCozziPataracchia, BeatriceBeatricePataracchiaRatto, MarcoMarcoRattoPfeiffer, PhilippPhilippPfeiffer2023-04-132023-04-132017-03https://www.alexandria.unisg.ch/handle/20.500.14171/102575The macroeconomic experience of the last decade stressed the importance of jointly studying the growth and business cycle fluctuations behavior of the economy. To analyze this issue, we embed a model of Schumpeterian growth into an estimated medium-scale DSGE model. Results from a Bayesian estimation suggest that investment risk premia are a key driver of the slump following the Great Recession. Endogenous innovation dynamics amplifies financial crises and helps explain the slow recovery. Moreover, financial conditions also account for a substantial share of R&D investment dynamics.enworking paper