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Labour Market in the Czech Republic: Dsge Approach

Author

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  • Železník Martin

    (National Bank of Slovakia, Economic and Monetary Analyses Department, Section of forecasting,Modelling and International Economy Analyses, Imricha Karvaša 1, 813 25Bratislava, Slovak Republic)

Abstract

This paper deals with the comparison of two versions of the DSGE model, supplemented with labour market frictions, based on different data used. One of the data sets has been pre-filtered with the HP filter (lambda set to 1) to get rid of any noise and the other with the original data series with measurement errors allowed. I compare the models with the following tools: parameters estimation, impulse response analysis, standard deviation and cross-correlations and recursive forecast. I also present the historical shock decomposition of the labour market variables to provide the explanation of the development in the Czech labour market, which is considered the most efficient labour market in Europe of the last couple of years with the lowest unemployment rate.

Suggested Citation

  • Železník Martin, 2018. "Labour Market in the Czech Republic: Dsge Approach," Review of Economic Perspectives, Sciendo, vol. 18(3), pages 225-259, September.
    • Handle: RePEc:vrs:reoecp:v:18:y:2018:i:3:p:225-259:n:1
    DOI: 10.2478/revecp-2018-0011
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    References listed on IDEAS

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