Financial accelerator in estimated model: application to the Czech economy

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Authors	HLOUŠEK Miroslav
Year of publication	2011
Type	Article in Proceedings
Conference	Mathematical Methods in Economics 2011
MU Faculty or unit	Faculty of Economics and Administration
Citation
Web	http://www.econ.muni.cz/~hlousek/papers/accelerator.pdf
Field	Economy
Keywords	financial accelerator; external finance premium; DSGE model; Bayesian estimation
Description	The paper presents results of estimation of New Keynesian DSGE model with financial accelerator. The model is estimated using Bayesian methods on data of Czech economy. The models with and without financial accelerator are assessed how they fit the data using statistical moments and Bayesian factor. This exercise shows surprising result that the model without financial accelerator performs on data much better than model with it.
Related projects:	Research Centre for the Competitiveness of the Czech Economy