Publication details

Structural Differences and Asymmetric Shocks between the Czech Economy and the Euro Area 12



Year of publication 2011
Type Article in Periodical
Magazine / Source Národohospodářský obzor – Review of Economic Perspectives
MU Faculty or unit

Faculty of Economics and Administration

Field Economy
Keywords New Keynesian; DSGE model; Bayes factor; Bayesian estimation; structural differences; asymmetric shocks; model comparison
Description The goal of this paper is to determine whether there exist asymmetric shocks and structural differences between the Czech economy and the Euro Area 12. A New Keynesian DSGE model of a small open economy is used for this purpose. Asymmetric shocks and structural differences are examined in two ways. Firstly, I examine asymmetry of shocks and sources of structural differences, using model comparison based on the Bayes factor. Secondly, I investigate impact of structural differences and differences in persistence and volatility of structural shocks on the behavior of both economies, using analysis of impulse-response functions.
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