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A Small Open Economy Model of the Czech Republic with Frictional Labor Market

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F15%3A00084133" target="_blank" >RIV/00216224:14560/15:00084133 - isvavai.cz</a>

  • Result on the web

    <a href="https://ece.pefka.mendelu.cz/sites/default/files/ece_2015_final.pdf" target="_blank" >https://ece.pefka.mendelu.cz/sites/default/files/ece_2015_final.pdf</a>

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    A Small Open Economy Model of the Czech Republic with Frictional Labor Market

  • Original language description

    The goal of this paper is to identify and quantify the interactions among monetary policy, business cycle and labor market variables for the Czech Republic during the last 15 years. A dynamic stochastic general equilibrium model is used to investigate the characteristics of the Czech economy before and after the financial crisis in 2008. This small open economy model contains Taylor-type monetary rule, price and wage rigidities, and search and matching frictions. The wages setting mechanism and hours worked are the result of the Nash bargaining process. Model parameters are estimated using the quarterly data of the Czech Republic for the period 1999:Q1 ? 2014:Q3. The model is able to match the business cycle properties of key economic variables relatively well. The results show that the reactions of variables to monetary shock are quite similar in both examined periods providing a clear path of the transmission mechanism. The wage rigidities are considerably higher after the crisis.

  • Czech name

  • Czech description

Classification

  • Type

    D - Article in proceedings

  • CEP classification

    AH - Economics

  • OECD FORD branch

Result continuities

  • Project

  • 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 18th International Conference Enterprise and Competitive Environment

  • ISBN

    9788075093424

  • ISSN

  • e-ISSN

  • Number of pages

    9

  • Pages from-to

    676-684

  • Publisher name

    Mendel University

  • Place of publication

    Brno

  • Event location

    Brno

  • Event date

    Jan 1, 2015

  • Type of event by nationality

    EUR - Evropská akce

  • UT code for WoS article