Nonlinear DSGE Model of the Czech Economy with Time-varying Parameters

• Authors: TVRZ Stanislav; VAŠÍČEK Osvald
• Year of publication: 2014
• MU Faculty or unit: Faculty of Economics and Administration
• Description: In this presentation, we study the changes in the structure and behaviour of the Czech economy in a period of the Great Recession and subsequent return to the long-run growth equilibrium. In order to distinguish the country specific changes from Europe-wide trends we also compare the time-varying estimates of the Czech economy and the euro area. Second order approximation of a nonlinear DSGE model with time-varying parameters is estimated with the use of a nonlinear particle filter.

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