Financial Frictions Relevance during the Crisis: Czech Case
| Autoři | |
|---|---|
| Rok publikování | 2011 |
| Druh | Článek ve sborníku |
| Konference | Advances in Applied Economics, Business and Development |
| Fakulta / Pracoviště MU | |
| Citace | |
| www | http://www.springerlink.com/content/u1351q80n835lg6v/ |
| Obor | Ekonomie |
| Klíčová slova | DSGE models; Financial accelerator; Bayesian methods |
| Popis | In this paper, we estimate a small open economy dynamic stochastic general equilibrium model with financial accelerator. Our aim is to find a satellite model with financial block for imposing judgments on comprehensive models which lack direct financial variables. We choose the model originally developed by Mohamad Hasni Shaari [5] as our starting point. After the basic introduction to the model, we show results for a Bayesian estimation and a recursive Bayesian estimation on Czech data. Finally, we carry out an experiment which shows us that the reducing interest rates would probably be faster, bigger and longer lasting with a model, which in itself contains financial frictions. On the other hand, the risk of such a decision stems from the instability of estimated parameters. |
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