The External and Internal Shocks' Impact on Macroeconomic Indicators of a Region

Leonid A. Serkov
Additional contact information
Leonid A. Serkov: Institute of Economics (Ural branch of RAS)

Journal of New Economy, 2018, vol. 19, issue 4, 45-63

Abstract: The research aims to examine the influence of external (from the centre and other regions) and internal shocks of supply and demand on the behaviour of economic agents using a compact regional dynamic stochastic general equilibrium model. The author estimates the parameters of the model by the Bayesian method on the statistical data of the economy of the Sverdlovsk oblast. The model under inves? tigation is New Keynesian, with rational expectations of economic agents, without cash, with rigid prices and flexible wages. The model considers the following types of agents – households, firms producing intermediate and final product, regional and federal government, and the Central Bank. The distinctive feature of the model is that it introduces social factor of the region as a factor influencing the volume of output, which depends on social expenditures (including health care costs) and expenditures on educa? tion and science in the region. Through the functions of impulse response, the author explores the influ? ence of simultaneous positive external and internal temporary shocks on some regional variables of the model under study (total consumption, investment, output, real wages, inflation, etc.).

Keywords: region; dynamic stochastic models; supply and demand shocks; social factor; impulse response function.Journal: Journal of New Economy (search for similar items in EconPapers)
JEL-codes: E17 E52 E61 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://izvestia.usue.ru/images/download/78/4.pdf (application/pdf)
http://izvestia.usue.ru/en/-2018/748 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:url:izvest:v:19:y:2018:i:4:p:45-63

DOI: 10.29141/2073-1019-2018-19-4-4

Access Statistics for this article

Journal of New Economy is currently edited by Yelizaveta A. Belousova

More articles in Journal of New Economy from Ural State University of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Victor Blaginin ().