Asymmetric behaviour of collateral constraint: applications on the Czech economy
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F15%3A00083835" target="_blank" >RIV/00216224:14560/15:00083835 - isvavai.cz</a>
Result on the web
<a href="http://mme2015.zcu.cz/downloads/MME_2015_proceedings.pdf" target="_blank" >http://mme2015.zcu.cz/downloads/MME_2015_proceedings.pdf</a>
DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Asymmetric behaviour of collateral constraint: applications on the Czech economy
Original language description
This paper analyses influence of asymmetric behaviour of collateral constraint through the lens of the DSGE model with occasionally binding constraint on housing wealth. The Czech economy data show positive but asymmetric behaviour between housing pricesand consumption. It can be explained by following mechanism. When the prices of houses fall, the housing wealth decreases, which decreases consumption substantially as constraint on borrowing is binding. On the other hand, rise in house prices increaseshousing wealth, the constraint becomes slack and consumption increases only slightly. Such mechanism is incorporated into DSGE model that is estimated on data of the Czech economy using Bayesian techniques. The results from model simulation show that the occasionally binding constraint is able to replicate asymmetric behaviour of house prices and consumption found in the data.
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
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2015
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of 33nd International Conference Mathematical Methods in Economics
ISBN
9788026105398
ISSN
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e-ISSN
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Number of pages
6
Pages from-to
707-712
Publisher name
University of West Bohemia
Place of publication
Plzeň
Event location
Cheb
Event date
Jan 1, 2015
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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