Output gap in the Czech economy: DSGE approach

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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.

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Journal Information

CiteScore 2018: 0.66

SCImago Journal Rank (SJR) 2018: 0.21
Source Normalized Impact per Paper (SNIP) 2018: 0.682


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