A DSGE Model of Slovakia with Frictional Labor Market and Monetary Regime Switch
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F17%3A00095343" target="_blank" >RIV/00216224:14560/17:00095343 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1515/revecp-2017-0015" target="_blank" >http://dx.doi.org/10.1515/revecp-2017-0015</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1515/revecp-2017-0015" target="_blank" >10.1515/revecp-2017-0015</a>
Alternative languages
Result language
angličtina
Original language name
A DSGE Model of Slovakia with Frictional Labor Market and Monetary Regime Switch
Original language description
The aim of this paper is to examine the dynamical and structural characteristics of Slovakia using a dynamic stochastic general equilibrium model augmented with search and matching mechanisms and other forms of frictions. I implement a switching mechanism to account for the monetary regime change in Slovakia in 2009. My focus lies in the investigation of labor market rigidities that affect the macroeconomic variables. I also examine the long term impact of the recession in 2009 on the Slovak economy. My findings are as follows. Firstly, based on parameter estimates, I identify significant labor market frictions present in the Slovak Republic. Secondly, my results capturing the historical evolution of key macroeconomic variables support the view that the recession in the examined small open economy was mainly caused by shocks originating in the foreign sector. Thirdly, the monetary authority can influence the labor market variables through its transmission channels relatively effectively; and lastly, I discovered that the recession decreased the Slovak economy’s flexibility. While the results of estimations on two sub-samples are quite similar for most of the structural parameters, an increase in price and wage stickiness is observable.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50200 - Economics and Business
Result continuities
Project
<a href="/en/project/GA17-26705S" target="_blank" >GA17-26705S: Impact of changes in tax legislation on efficiency and equity in the Czech Republic</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
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Národohospodářský obzor - Review of Economic Perspectives
ISSN
1213-2446
e-ISSN
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Volume of the periodical
17
Issue of the periodical within the volume
3
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
27
Pages from-to
287-313
UT code for WoS article
000414638600004
EID of the result in the Scopus database
2-s2.0-85030474439