Publication detail

A Simple Real Business Cycle Model - An Application on the Czech Economy.

Author(s): PhDr. Jaromír Baxa Ph.D.,
Type: Article in collection
Year: 2008
Number: 0
ISSN / ISBN: ISBN 978-80-7372-387-3
Published in: Proceedings of 26th International conference Mathematical Methods in Economics
Publishing place: Liberec
Keywords: Business Cycles, Simulation of business cycles, Calibration.
JEL codes: C59, E32, E37
Suggested Citation: Baxa, J. (2008): A Simple Real Business Cycle Model - An Application on the Czech Economy. In: Proceedings of 26th International conference Mathematical Methods in Economics, Liberec: Technical University of Liberec.
Grants: GAUK 46108: New Nonlinear Capital Markets Theories: Fractal, Bifurcational and Behavioral Approach
Abstract: This paper presents a simple real business cycle model calibrated for the Czech economy. Despite the simplicity of
the model as well as the fact that the turbulent years of the transition period were included in the dataset, the resulting
behavior of the simulated variables can explain the observed fluctuations of the main macroeconomic variables to a
large extent, but not perfectly. The deviations between the behavior of the simulated and observed variables were,
however, caused either by theoretical assumptions of the model or they are in accordance with the common knowledge
of the Czech economy with its labor market rigidities, volatile trend growth or initial undercapitalization of the
economy.

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