Structural heterogeneity or asymmetric shocks? Poland and the euro area through the lens of a two-country DSGE model

Marcin Kolasa

Economic Modelling, 2009, vol. 26, issue 6, 1245-1269

Abstract: This paper presents a two-country model linking Poland and the euro area and applies it for assessment of heterogeneity across these two regions. Overall, our results can be seen as rather inconclusive about the differences in parameters describing agents' decision-making in Poland and in the euro area. On the contrary, we find strong evidence for heterogeneity in terms of volatility and synchronization of shocks hitting both economies. Our results may be viewed as a step towards estimating the costs of Poland's entry to the European Monetary Union, associated with giving up the monetary autonomy and losing benefits from stabilizing movements of the exchange rate.

Keywords: Two-country; DSGE; Bayesian; estimation; Heterogeneity (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (63)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264-9993(09)00096-0
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Structural heterogeneity or asymmetric shocks? Poland and the euro area through the lens of a two-country DSGE model (2008)
Working Paper: Structural heterogeneity or asymmetric shocks? Poland and the euro area through the lens of a two-country DSGE model (2008)
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:eee:ecmode:v:26:y:2009:i:6:p:1245-1269

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().