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The convergence dynamics of a transition economy: The case of the Czech Republic

  • Bruha, Jan
  • Podpiera, Jirí
  • Polák, Stanislav

In this paper we develop a two-country dynamic general equilibrium model by means of which we seek to explain the long-run path of a transition economy. The model's novel feature is the inclusion of quality investment in the standard framework of applied general equilibrium two-country models. This feature is necessary to explain the trend in the real exchange rate. We present an application to the Czech economy.

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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 27 (2010)
Issue (Month): 1 (January)
Pages: 116-124

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Handle: RePEc:eee:ecmode:v:27:y:2010:i:1:p:116-124
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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