Labour market frictions in a small open economy model of the Czech Republic
| Authors | |
|---|---|
| Year of publication | 2012 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 30th International Conference Mathematical Methods in Economics 2012 |
| MU Faculty or unit | |
| Citation | |
| Web | Conference proceedings |
| Field | Economy |
| Keywords | search and matching model; Bayesian estimation; DSGE model; small open economy |
| Attached files | |
| Description | This contribution examines the impacts of introducing search and matching frictions in an open economy DSGE framework of the Czech economy. Model estimates should help to understand the driving forces behind important labour market variables: the wage bargaining power of unions, the match elasticity of unemployed, the efficiency of the matching process, separation rate and the flexibility of wages. Search and matching aspect provides satisfactory description of employment flows in the Czech economy. Moreover, the model of the open economy fits the business cycle features of the main economic variables better than the closed model. |