Publication details

A Growth Model with Hysteresis Effects and Unemployment in the Czech Republic

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Authors

NĚMEC Daniel MORAVANSKÝ Dalibor

Year of publication 2007
Type Article in Proceedings
Conference PROCEEDINGS of the International Academic Conference on INCREASING COMPETITIVENESS, Workshop 151 Mathematical Methods in Economics
MU Faculty or unit

Faculty of Economics and Administration

Citation
Field Economy
Keywords hysteresis; growth model; unemployment
Description The hysteresis hypothesis is an alternative concept which offers an interesting view on the problem of unemployment. There are many approaches for analyzing this phenomenon from macroeconomic and microeconomic point of view. In this contribution, a new insight on the hysteresis hypothesis is presented. Hysteresis effects are incorporated within the framework of growth theory. From the theoretical point of view, hysteresis is viewed as a result of selection between different multiple equilibrium paths implicated by particular fiscal policies. Using macroeconomic data of the Czech Republic, parameters of this model are calibrated. Limitations of the model are discussed as well as further possibilities for its enrichment. Conclusions about the patterns of Czech unemployment are made.
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