Investigating structural differences of the Czech economy: Does asymmetry of shocks matter?

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F10%3A00044838" target="_blank" >RIV/00216224:14560/10:00044838 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Investigating structural differences of the Czech economy: Does asymmetry of shocks matter?
Original language description
The goal of this paper is to evaluate heterogeneity between the Czech Republic and the Euro area. For this purpose, we introduce a two-country dynamic stochastic general equilibrium model that allows different sources of heterogeneity across countries. We focus on differences in structural parameters and asymmetry of shocks hitting the two economies. Using Bayesian techniques, we estimate various specifications of log-linear models (unrestricted and nested) and then we test different sources of heterogeneity. Our results indicate that the main sources of heterogeneity are price and wage rigidities and the asymmetry of shocks. On the other hand, we have found strong evidence in favor of homogeneity in parameters describing utility function of households.
Czech name
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Czech description
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Publication year
2010
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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