Lockdown Policies and Firms' Investments in a Two-Period Macroeconomic Model
|Author:||Bc. Tomáš Fencl|
|Year:||2022 - summer|
|Leaders:|| doc. PhDr. Martin Gregor Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Throughout the COVID-19 pandemic, the implementation of lockdown policies was
often accompanied by some level of commitment toward its development or termination.
This thesis introduces multiple gradually improving two-period macroeconomic models
which induce a time inconsistency problem regarding the lockdown policy choice. The
effect of the policymaker’s commitment is studied and analyzed as a possible solution to
this problem. Aside from thoughts concerning directly the construction of the models,
for instance, the reasoning behind its short-term nature or the importance of the shape
of input functions, this thesis evaluates the policy commitment as an efficient tool. It
further emphasizes the importance of the commitment’s credibility