Structural change of the Czech economy
| Authors | |
|---|---|
| Year of publication | 2009 |
| Type | Article in Proceedings |
| Conference | Mathematical Methods in Economics 2009 |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | structural change; Markov switching regimes; New Keynesian; Czech economy; DSGE |
| Description | The goal of this paper is to estimate timing and shape of structural change (regime switch) of the Czech economy, which took place at the end of the nineties of the last century. The approach we have chosen is based on Dynamic Stochastic General Equilibrium (DSGE) model with Markov switching regimes. In order to keep the estimate meaningful with respect to the number of parameters (model complexity) and length of the Czech time series, we have chosen a small prototypical New Keynesian model. This model is estimated by Bayesian techniques. The results do not consists of parameter estimates for different regimes only, but also of probabilities of these regimes in time. This offers very interesting view of the changes the Czech economy went through in the second half of the nineties. |
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