Publication details
Development of a small open economy with labour market frictions in times of crisis : Non-stationary DSGE model of the Czech economy
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| Year of publication | 2021 |
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| Description | The objective of masters thesis Development of a small open economy with labour market frictions in times of crisis: Non-stationary DSGE model of the Czech economy is performing an analysis of structural changes in dynamics of the economy of the Czech Republic, especially its labour market. This thesis aims to identify the impacts of negative shocks on the dynamics of the economy that occurred during the financial crisis in 2008 and the coronavirus crisis in 2020. The chosen model is estimated over data from the first 20 years of the 20th century. Results of the estimation are examined through historical shock decomposition and simulation of shocks' impact on the economy. This analysis is complemented by recursive estimation of the model over the years of both pre-crisis booms and crises themselves. The recursive analysis focuses on the main labour market parameters and the four most influential shocks on the labour market. The estimation shows the difference in nature of analysed crises, which manifests in behaviour and size of shocks to the economy. The analysis reveals the four most influential shocks on the labour market of which the shock in preferences is the most influential. The recursive estimation indicated that shocks during the coronavirus crisis have a greater but shorter impact than those during the financial crisis. |
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