Sectoral Indebtedness and Its Influence on Output of the Czech Economy
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F24%3A43925021" target="_blank" >RIV/62156489:43110/24:43925021 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.1108/978-1-83753-840-920241015" target="_blank" >https://doi.org/10.1108/978-1-83753-840-920241015</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1108/978-1-83753-840-920241015" target="_blank" >10.1108/978-1-83753-840-920241015</a>
Alternative languages
Result language
angličtina
Original language name
Sectoral Indebtedness and Its Influence on Output of the Czech Economy
Original language description
This chapter examines the impact of sectoral indebtedness on GDP in Czechia, initially a low-indebted small open economy in which debt dynamics are becoming a major concern. The impact of household debt, non-financial corporation debt and public debt is analysed with the use of local projections based on instrumental variable estimations. The results show a more pronounced influence of household debt compared to non-financial corporation and government debt. Initially, increasing household debt stimulates short-run economic activity, but in the medium run, it limits household consumption and negatively affects output. This negative impact gradually turns into a positive effect in the long run. Non-financial corporation debt has a negative short- to medium-run impact but can have a small positive effect in the long run due to the prevalence of tradable industries. Public debt initially has a short-run negative impact, but then gradually becomes positive. Overall, the findings have implications for macroeconomic policies and the importance of monitoring financial stability.
Czech name
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Czech description
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Classification
Type
C - Chapter in a specialist book
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2024
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Book/collection name
Modeling Economic Growth in Contemporary Czechia
ISBN
978-1-83753-841-6
Number of pages of the result
20
Pages from-to
231-250
Number of pages of the book
322
Publisher name
Emerald Group Publishing Ltd.
Place of publication
Bingley
UT code for WoS chapter
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