EconPapers    
Economics at your fingertips  
 

Output gap in the Czech economy: DSGE approach

Bechný Jakub ()
Additional contact information
Bechný Jakub: Masaryk University, Faculty of Economics and Administration, Department of Economics, Lipová 41a, 602 00 Brno, Czech Republic

Review of Economic Perspectives, 2019, vol. 19, issue 2, 137-156

Abstract: This paper presents three measures of the output gap estimated by a dynamic stochastic general equilibrium model of the Czech economy. We argue that the most plausible description of the business cycle provides the output gap defined as a deviation from a flexible price level of output, which is generated solely by permanent growth shocks. Our model shows that 2006-2008 overheating of the economy and the following 2008-2009 slump can be largely attributed to development in a world economy and export and import sectors, while the 2012-2013 recession was caused mainly by a combination of adverse domestic demand and cost shocks.

Keywords: DSGE model; labour market; output gap; small open economy (search for similar items in EconPapers)
JEL-codes: C32 E32 E47 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.degruyter.com/view/j/revecp.2019.19.is ... -0008.xml?format=INT (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:vrs:reoecp:v:19:y:2019:i:2:p:137-156:n:4

Access Statistics for this article

Review of Economic Perspectives is currently edited by Antonín Slaný

More articles in Review of Economic Perspectives from Sciendo
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2019-07-02
Handle: RePEc:vrs:reoecp:v:19:y:2019:i:2:p:137-156:n:4