Analyzing the Czech Output Gap Using a Small Open Economy DSGE Model
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F11%3A00053253" target="_blank" >RIV/00216224:14560/11:00053253 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Analyzing the Czech Output Gap Using a Small Open Economy DSGE Model
Original language description
This contribution uses a simple New Keynesian DSGE model to examine the Czech output gap from 1996 to 2010. We estimate the DSGE model in order to obtain trajectories of exogenous shocks. We test the estimated model for its data-matching properties to show that is sufficiently approximates the real economy. Based on the model, we decompose the deviation of output from trend into contributions of the exogenous shocks. This decomposition allows us to interpret the economic sources of the uctuations in theoutput gap. We show that since the year 2000, the foreign demand shock and the exchange rate shock have been increasingly important for the domestic business cycle. Overall, domestic shocks account for more than a half of the variance in the domestic output gap. We contrast the recession of 1997-1998, caused primarily by domestic shocks, to the recession of 2009, which was caused by a drop in the foreign demand.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
<a href="/en/project/1M0524" target="_blank" >1M0524: Research center on competitiveness of Czech economy</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)<br>S - Specificky vyzkum na vysokych skolach
Others
Publication year
2011
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Mathematical Methods in Economics 2011
ISBN
978-80-7431-058-4
ISSN
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e-ISSN
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Number of pages
6
Pages from-to
248-253
Publisher name
University of Economics in Prague, University of Economics in Bratislava
Place of publication
Praha
Event location
Jánská dolina
Event date
Jan 1, 2011
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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