The impact of the euro adoption on the complexity of goods in Slovenian exports
Piotr Gabrielczak and
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Piotr Gabrielczak: Faculty of Economics and Sociology, University of Lodz
Tomasz Serwach: Faculty of Economics and Sociology, University of Lodz
No 3/2017, Lodz Economics Working Papers from University of Lodz, Faculty of Economics and Sociology
In this paper, we estimate Erceg, Henderson and Levin’s  sticky price and sticky wage dynamic stochastic general equilibrium (DSGE) model while allowing for wage or price Calvo parameters regime switching and compare this with the constant parameters model. Our results suggest that the model with price and wage rigidity switching is strongly favored by the data. However, we do not find significant evidence in support of independent Markov chains. Moreover, we identify historical periods when price and wage stickiness were low and show that during such periods, the economy reacts more strongly to structural shocks.
Keywords: Eurozone; international trade; Slovenia; complexity; synthetic control method. (search for similar items in EconPapers)
JEL-codes: C21 F14 F15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-int and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ann:wpaper:3/2017
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