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. |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 39 |
| Awards and prizes: | |
| Link: | https://dspace.cuni.cz/handle/20.500.11956/175838 |
| 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 |
