New Keynesian General Equilibrium Model of the Czech Economy
|Author:||Mgr. Andrej Dudík|
|Year:||2009 - summer|
|Leaders:|| prof. Ing. Miloslav Vošvrda CSc.
|Work type:|| Economic Theory
|Awards and prizes:|
|Abstract:||The work focuses on the development of a smaller-scale non-linear Dynamic Stochastic General Equilibrium model with typical New Keynesian features, which is subsequently applied for modelling the Czech economy business cycle. To this end, the model is estimated using maximum likelihood Bayesian method with the Kalman filter and the Metropolis-Hastings algorithm.
Special care is paid to the the issues of derivation and approximation of the model, in order to retain its non-linear nature. Although some of the properties of the estimated model are not fully satisfactory, the estimated model can be considered an useful approximation of the Czech economic reality.