Work detail

The Nature and the Importance of Foreign Shocks in Slovak Economy: a block exogeneity VAR analysis

Author: Bc. Marek Rusnák
Year: 2008 - summer
Leaders: prof. Roman Horváth Ph.D.
Work type: Bachelors
Language: English
Pages: 56
Awards and prizes: B.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good bachelors diploma thesis.
Abstract: This thesis provides the evidence about the nature and the relative importance of domestic and foreign shocks in Slovak economy. We estimate a seven variable Vector Autoregressions system with block exogeneity restriction. Using impulse response analysis, we examine the size and the persistence of the effects of the shocks on the economy. First, we estimate the effects of domestic monetary policy shock. Next, we turn our attention to the effects of foreign shocks. Further, we study the relative importance of foreign shocks in explaining the fluctuations in Slovak aggregate variables. The results indicate that the effects of monetary policy shocks in Slovakia are consistent with economic theory. Moreover, the foreign shocks seem to play an important role in explaining the variation of the Slovak macroeconomic variables, especially for the price level.
Downloadable: Bachelor Thesis of Marek Rusnák


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