Detail práce

DSGE modeling of business cycle properties of Czech labor market

Autor: Mgr. Daniel Sentivany
Rok: 2016 - letní
Vedoucí: Ing. Aleš Maršál M.A.
Typ práce: Diplomová
Ekonomická teorie
Jazyk: Anglicky
Stránky: 73
Abstrakt: The goal of this thesis is to develop a DSGE model that accounts for the key business cycle
properties of the Czech labor market. We used standard New Keynesian framework for
monetary policy analysis and incorporated an elaborated labor market setup with equilibrium
wage derived via an alternating offer bargaining protocol originally proposed by
Rubinstein (1982) and follow the work of Christiano, Eichenbaum and Trabandt (2013) in
the following steps. Firstly, we calibrated the closed economy model according to values
suited for the Czech economy and found that the model can not only account for higher
volatility of the real wage and unemployment, but can also explain the contemporaneous
rise of both wages and employment after an expansionary shock in the economy, so called
Shimer puzzle (Shimer, 2005a). Secondly, we demonstrated that the alternating offer bargaining
sharing rule outperforms the Nash sharing rule under assumption of using the
hiring costs in our framework (more so while using search costs) and therefore is better
suited for use in larger scale models. Thirdly, we concluded that after estimating the labor
market parameters using the Czech data, our model disproved the relatively low values
linked to the probabilities of unsuccessful bargaining and job destruction.




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