The Impact of Credit Booms and Economic Policy on Labour Productivity: A Sectoral Analysis

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F18%3A10241167" target="_blank" >RIV/61989100:27510/18:10241167 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.vsfs.cz/periodika/acta-2018-1.pdf" target="_blank" >https://www.vsfs.cz/periodika/acta-2018-1.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

The Impact of Credit Booms and Economic Policy on Labour Productivity: A Sectoral Analysis

Popis výsledku v původním jazyce

Recent empirical evidence suggests that during economic booms, factors of production (especially labour) may shift into less productive and more pro-cyclical sectors of the economy, which can subsequently deepen and prolong economic slump. In this paper, we explore the eff ects of credit booms, monetary and fi scal policy expansions on labour productivity and labour reallocation in the Czech Republic. We model the eff ects jointly, as they are not mutually exclusive. To this purpose, we build a large dataset of hundreds of economic variables and estimate a FAVAR model of the Czech economy. We produce several fi ndings: (i) a credit boom causes labour reallocation towards less productive sectors; (ii) the eff ects are amplifi ed by a subsequent crisis period; (iii) monetary expansion supports the catch-up eff ect of the Czech economy but at the same time may boost credit activity and indirectly cause misallocations; and (iv) the most pro-cyclical sectors in terms of labour productivity in the Czech economy are Mining and quarrying, Construction and Manufacturing. These fi ndings contribute to the debate illustrating the prolonged decline in the economy and can be further used as an information base for the better targeting of preventive and stabilising economic policy measures in the future.

Název v anglickém jazyce

The Impact of Credit Booms and Economic Policy on Labour Productivity: A Sectoral Analysis

Popis výsledku anglicky

Recent empirical evidence suggests that during economic booms, factors of production (especially labour) may shift into less productive and more pro-cyclical sectors of the economy, which can subsequently deepen and prolong economic slump. In this paper, we explore the eff ects of credit booms, monetary and fi scal policy expansions on labour productivity and labour reallocation in the Czech Republic. We model the eff ects jointly, as they are not mutually exclusive. To this purpose, we build a large dataset of hundreds of economic variables and estimate a FAVAR model of the Czech economy. We produce several fi ndings: (i) a credit boom causes labour reallocation towards less productive sectors; (ii) the eff ects are amplifi ed by a subsequent crisis period; (iii) monetary expansion supports the catch-up eff ect of the Czech economy but at the same time may boost credit activity and indirectly cause misallocations; and (iv) the most pro-cyclical sectors in terms of labour productivity in the Czech economy are Mining and quarrying, Construction and Manufacturing. These fi ndings contribute to the debate illustrating the prolonged decline in the economy and can be further used as an information base for the better targeting of preventive and stabilising economic policy measures in the future.

Druh

J_ost - Ostatní články v recenzovaných periodicích

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

<a href="/cs/project/GA16-13784S" target="_blank" >GA16-13784S: Hospodářská politika a instituce pro finanční sektor: Současné výzvy při vyvažování finančního rozvoje a stability</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název periodika

ACTA VŠFS

ISSN

1802-792X

e-ISSN

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Svazek periodika

12

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

33

Strana od-do

10-42

Kód UT WoS článku

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EID výsledku v databázi Scopus

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