Cash-in-Advance Approach
| Authors | |
|---|---|
| Year of publication | 2007 |
| Type | Article in Proceedings |
| Conference | Recenzovaný sborník příspěvků mezinárodní Baťovy doktorandské konference |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | DSGE models; money-in-the-utility approach; cash-in-advance approach; Bayesian estimation |
| Description | The paper deals with the cash-in-advance (CIA) approach in macroeconomic modeling. The CIA models incorporate money into the neoclassical dynamic stochastic general equilibrium (DSGE) framework in order to analyze monetary issues and the business cycles. The CIA approach stresses the medium-of-exchange function of money. Money is directly used to purchase consumption goods. First part of the paper describes main characteristics of this approach. An example of the CIA model is constructed in the second part. The model is solved. Model parameters are estimated with Bayesian technique on the quarterly Czech economy data. |
| Related projects: |