Structural changes in the Czech, Slovak and euro area economies during the Great Recession

Tvrz, Stanislav; Vašíček, Osvald

doi:10.1515/revecp-2016-0018

Cited by 2 publications

(2 citation statements)

References 6 publications

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“…The prior distributions are set in line with the original article by Albertini et al (2012) with relatively high standard deviations. A similar setting can be found in works of other authors, like Tvrz and Vašíček (2016) or Keen and Wang (2007), who derive the price adjustment cost parameter from the Calvo (1983) type price setting with a steady-state markup 1.2 ( = 6) and price reoptimization intervals of 4 quarters to 58.25. …”

Section: Calibrationmentioning

confidence: 87%

“…These modifications include the implementation of a monetary regime switch to capture the country's entry to the euro area and surrendering its autonomous monetary policy to the European Central Bank. I use a similar regime switch to the one implemented by Senaj et al (2010) or Tvrz and Vašíček (2016). The insertion of such a regime switch reflects that the switch is (i) permanent, (ii) unexpected and (iii) the threshold is known exactly.…”

Section: Model Modificationsmentioning

confidence: 99%

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A DSGE Model of Slovakia with Frictional Labor Market and Monetary Regime Switch

Pápai

2017

Review of Economic Perspectives

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Abstract:The aim of this paper is to examine the dynamical and structural characteristics of Slovakia using a dynamic stochastic general equilibrium model augmented with search and matching mechanisms and other forms of frictions. I implement a switching mechanism to account for the monetary regime change in Slovakia in 2009. My focus lies in the investigation of labor market rigidities that affect the macroeconomic variables. I also examine the long term impact of the recession in 2009 on the Slovak economy. My findings are as follows. Firstly, based on parameter estimates, I identify significant labor market frictions present in the Slovak Republic. Secondly, my results capturing the historical evolution of key macroeconomic variables support the view that the recession in the examined small open economy was mainly caused by shocks originating in the foreign sector. Thirdly, the monetary authority can influence the labor market variables through its transmission channels relatively effectively; and lastly, I discovered that the recession decreased the Slovak economy's flexibility. While the results of estimations on two sub-samples are quite similar for most of the structural parameters, an increase in price and wage stickiness is observable.

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Section: Calibrationmentioning

confidence: 87%

Section: Model Modificationsmentioning

confidence: 99%

A DSGE Model of Slovakia with Frictional Labor Market and Monetary Regime Switch

Pápai

2017

Review of Economic Perspectives

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Business Risk in Times of Economic Recession and Economic Growth

Horák¹,

DLOUHÝ²

2021

AD ALTA: Journal of Interdisciplinary Research

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The issue of business risk in times of recession or growth is very topical in these times. The Czech Republic and its neighboring countries are currently struggling with the economic problems caused by the Covid-19 pandemic. The aim of the paper is to analyze the number of insolvency petitions in the Czech Republic from the years 2010–2020 and to compare them with each other. The data source are data from publicly available resources from the Creditreform group and also from the CRIF database of the Cribis platform. First were created tables for the Agriculture and Forestry, Manufacturing, Construction and Transport sectors. Data for the relevant years were added to them from the aforementioned resources. Then was created a line chart for each industry. Using time series analysis and comparison, we analyze and compare the development of insolvencies. At the same time, we use causal analysis to find out why there were high numbers of insolvencies in the given years. We are also looking at which sectors were hit hardest during the insolvency crisis, when they were hit hardest, how they did in times of economic growth and how they should adapt to the next possible crisis. During the Great Recession, the construction sector was hit the hardest, and then the transport sector also suffered greatly. The largest numbers of insolvencies can be observed in 2012. At a time of economic growth, which began in 2014, the numbers of insolvencies fell in all sectors analyzed, but mostly in agriculture and forestry and transport. Businesses in the sectors analyzed can adapt to the next crisis by creating larger cash reserves or changing, for example, crop production or transport by temporarily reducing fares to attract new customers. We see the benefit of this work in the analysis of the number of insolvencies in the given sectors, which has not been recorded in almost any academic papers. We also see a benefit in determining the conditions for how companies can prevent another crisis.

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Structural changes in the Czech, Slovak and euro area economies during the Great Recession

Cited by 2 publications

References 6 publications

A DSGE Model of Slovakia with Frictional Labor Market and Monetary Regime Switch

A DSGE Model of Slovakia with Frictional Labor Market and Monetary Regime Switch

Business Risk in Times of Economic Recession and Economic Growth

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