Project information
Labour Market Modelling within a DSGE Approach

The goal of the research project is to contribute to the understanding of the dynamics of main labour-market variables for macroeconomic modelling and forecasting. We will compare and evaluate various ways of incorporating labour market dynamics into the New Keynesian DSGE framework from the perspective of replicating important data features (stylized facts and moment matching), model properties (impulse responses, proper interpretation of shock decomposition, and in-sample simulations), data requirement etc. Then, based on practical operability, we will propose a suitable approach for implementing the labour market into a DSGE model applied to the Czech economy.