<abstract xmlns="http://www.w3.org/1999/xhtml"><p> 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.</p></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.

Labour Market in the Czech Republic: Dsge Approach

Review of Economic Perspectives

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Labour Market in the Czech Republic: Dsge Approach"}

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...

Labour Market in the Czech Republic: Dsge Approach

Published Online: Sep 11, 2018

Page range: 225 - 259

Received: May 18, 2018

Accepted: Mar 24, 2018

DOI: https://doi.org/10.2478/revecp-2018-0011

Keywords
DSGE models, labour market, search and matching

© 2018 Martin Železník, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Labour Market in the Czech Republic: Dsge Approach

Published Online: Sep 11, 2018

Page range: 225 - 259

Received: May 18, 2018

Accepted: Mar 24, 2018

DOI: https://doi.org/10.2478/revecp-2018-0011

KeywordsDSGE models, labour market, search and matching

© 2018 Martin Železník, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
DSGE models, labour market, search and matching