Structural change of the Czech economy

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Authors	REMO Adam VAŠÍČEK Osvald
Year of publication	2009
Type	Article in Proceedings
Conference	Mathematical Methods in Economics 2009
MU Faculty or unit	Faculty of Economics and Administration
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.
Related projects:	Research Centre for the Competitiveness of the Czech Economy