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PITFALLS OF DSGE MODEL APPROACH IN MONETARY UNION

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F20%3A00115219" target="_blank" >RIV/00216224:14560/20:00115219 - isvavai.cz</a>

  • Result on the web

    <a href="http://www.eaco.eu/danube-journal/archive/" target="_blank" >http://www.eaco.eu/danube-journal/archive/</a>

  • DOI - Digital Object Identifier

    <a href="http://dx.doi.org/10.2478/danb-2019-0019" target="_blank" >10.2478/danb-2019-0019</a>

Alternative languages

  • Result language

    angličtina

  • Original language name

    PITFALLS OF DSGE MODEL APPROACH IN MONETARY UNION

  • Original language description

    This paper investigates the impact of country size on the DSEG model estimation of the monetary union. Following DSGE model for fiscal policy simulations (FiMod) the union is considered to have a two-country structure, the investigated country has weight in union equal to its population share and the second country represents the rest of members. The model is estimated for different country sizes and it is found there are two areas of equilibrium instability which covers 11 of 19 European Monetary Union members. The result is in contrary with Stähler and Thomas (2012) who estimated FiMod for Spain and stated that model can be recalibrated to every member of the monetary union. According to the result the size of country matters and affects the stability of equilibrium. Therefore, special attention is paid to small economies in monetary union. The results and consequences are then discussed with examples from recent history

  • Czech name

  • Czech description

Classification

  • Type

    J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database

  • CEP classification

  • OECD FORD branch

    50202 - Applied Economics, Econometrics

Result continuities

  • Project

  • Continuities

    S - Specificky vyzkum na vysokych skolach

Others

  • Publication year

    2020

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Name of the periodical

    DANUBE: Law, Economics and Social Issues Review

  • ISSN

    1804-6746

  • e-ISSN

  • Volume of the periodical

    10

  • Issue of the periodical within the volume

    4

  • Country of publishing house

    US - UNITED STATES

  • Number of pages

    14

  • Pages from-to

    369-382

  • UT code for WoS article

  • EID of the result in the Scopus database

    2-s2.0-85078404678