DSGE model with government sector and inflation targeting:
Structural changes of Czech economy in a period of recession

D 2014

DSGE model with government sector and inflation targeting: Structural changes of Czech economy in a period of recession

PISCA, Vratislav and Osvald VAŠÍČEK

Basic information

Original name

DSGE model with government sector and inflation targeting: Structural changes of Czech economy in a period of recession

Authors

PISCA, Vratislav (703 Slovakia, guarantor, belonging to the institution) and Osvald VAŠÍČEK (203 Czech Republic, belonging to the institution)

Edition

Olomouc, Proceedings of the 32nd International Conference Mathematical Methods in Economics, p. 807-812, 6 pp. 2014

Publisher

Palacký University

Other information

Language

English

Type of outcome

Proceedings paper

Field of Study

50200 5.2 Economics and Business

Country of publisher

Czech Republic

Confidentiality degree

is not subject to a state or trade secret

Publication form

electronic version available online

References:

URL

RIV identification code

RIV/00216224:14560/14:00082120

Organization unit

Faculty of Economics and Administration

ISBN

978-80-244-4209-9

UT WoS

000356417900139

Keywords in English

nonlinear DSGE model; Great Recession; European debt crisis; Czech economy; structural changes;

Abstract

In the original language

In the paper we compare the structure of the Czech economy in two periods: before and during the Great Recession. This small open economy is represented by two variations of a medium scale nonlinear dynamic stochastic model of a general equilibrium with scal and monetary policy. This model framework is based on a Portuguese approach introduced by Almeida (2009). We decided to use this model, because it captures the important features of the Czech economy in a reasonable detail. Since this concept was primarily constructed for the estimation of an economy in a currency union, we had to add a Taylor type monetary policy and a nominal exchange rate into the model. Both model variations are estimated with the use of bayesian techniques with the same priors, in order to analyse structural changes linked to the Great Recession. With the use of the shock decomposition we will analyse the impact of the exogenous shocks on the development of the Czech output. Especially, we will focus on the eects of the scal policy in the period of the Great Recession and the European debt crisis.

Links

MUNI/A/0808/2013, interní kód MU

Name: Analýza chování ekonomiky a hospodářské politiky v období recese: DSGE modely malých otevřených ekonomik s finančními frikcemi a frikcemi trhu práce (Acronym: DSGE modely otevřených ekonomik v období recese)

Investor: Masaryk University, Category A

Cite

PISCA, Vratislav and Osvald VAŠÍČEK. DSGE model with government sector and inflation targeting: Structural changes of Czech economy in a period of recession. Online. In Talasova, J; Stoklasa, J; Talasek, T. Proceedings of the 32nd International Conference Mathematical Methods in Economics. Olomouc: Palacký University, 2014, p. 807-812. ISBN 978-80-244-4209-9.

@inproceedings{1199905,
   author = {Pisca, Vratislav and Vašíček, Osvald},
   address = {Olomouc},
   booktitle = {Proceedings of the 32nd International Conference Mathematical Methods in Economics},
   editor = {Talasova, J; Stoklasa, J; Talasek, T},
   keywords = {nonlinear DSGE model; Great Recession; European debt crisis; Czech economy; structural changes;},
   howpublished = {elektronická verze "online"},
   language = {eng},
   location = {Olomouc},
   isbn = {978-80-244-4209-9},
   pages = {807-812},
   publisher = {Palacký University},
   title = {DSGE model with government sector and inflation targeting: Structural changes of Czech economy in a period of recession},
   url = {http://www.mme2014.upol.cz/downloads/MME_2014_Proceedings.pdf},
   year = {2014}
}

TY  - CONF
ID  - 1199905
AU  - Pisca, Vratislav - Vašíček, Osvald
PY  - 2014
TI  - DSGE model with government sector and inflation targeting: Structural changes of Czech economy in a period of recession
PB  - Palacký University
CY  - Olomouc
SN  - 9788024442099
KW  - nonlinear DSGE model
KW  - Great Recession
KW  - European debt crisis
KW  - Czech economy
KW  - structural changes;
UR  - http://www.mme2014.upol.cz/downloads/MME_2014_Proceedings.pdf
N2  - In the paper we compare the structure of the Czech economy in two periods: before and during the Great Recession. This small open economy is represented by two variations of a medium scale nonlinear dynamic stochastic model of a general equilibrium with scal and monetary policy. This model framework is based on a Portuguese approach introduced by Almeida (2009). We decided to use this model, because it captures the important features of the Czech economy in a reasonable detail. Since this concept was primarily constructed for the estimation of an economy in a currency union, we had to add a Taylor type monetary policy and a nominal exchange rate into the model. Both model variations are estimated with the use of bayesian techniques with the same priors, in order to analyse structural changes linked to the Great Recession. With the use of the shock decomposition we will analyse the impact of the exogenous shocks on the development of the Czech output. Especially, we will focus on the eects of the scal policy in the period of the Great Recession and the European debt crisis.
ER  -

PISCA, Vratislav and Osvald VAŠÍČEK. DSGE model with government sector and inflation targeting: Structural changes of Czech economy in a period of recession. Online. In Talasova, J; Stoklasa, J; Talasek, T. \textit{Proceedings of the 32nd International Conference Mathematical Methods in Economics}. Olomouc: Palacký University, 2014, p.~807-812. ISBN~978-80-244-4209-9.

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