Labour market frictions and growth in small open economy: DSGE model
| Authors | |
|---|---|
| Year of publication | 2018 |
| Type | Article in Proceedings |
| Conference | 36th International Conference Mathematical Methods in Economics Conference Proceedings |
| MU Faculty or unit | |
| Citation | |
| Web | https://mme2018.fm.vse.cz/wp-content/uploads/2018/09/MME2018-Electronic_proceedings.pdf |
| Keywords | DSGE model; economic growth; labour market; small open economy |
| Attached files | |
| Description | In this paper, we quantify impacts of labour market disturbances on the Czech economic growth. The analysis is done by using a small open economy dynamic stochastic general equilibrium model with real wage rigidity and involuntary unemployment. To estimate the model, we use thirteen observed variables from 2001Q1 to 2017Q4 and a standard Bayesian approach. The data are not pre-filtered, but we employ the growth rates of output (and its components), which allows us to analyse impacts of various disturbances on the growth. Impulse response functions and historical shock decompositions reveal that especially labour supply shocks have had a non-negligible impact on the Czech economic growth. |
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