Publication details
The Relevance of Financial Frictions in V4 Countries
| Authors | |
|---|---|
| Year of publication | 2015 |
| Type | Article in Proceedings |
| Conference | MEKON 2015: The CD of participants' reviewed papers from 17th international conference |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | DSGE model; Great Recession; financial frictions; financial accelerator |
| Attached files | |
| Description | In this paper, the importance of the financial frictions in the countries of Visegrád Group is compared using a set of estimated DSGE models with financial accelerator. Results of the Bayesian estimation confirm the overall similarity of V4 economies, with some notable differences. According to the variance decomposition, the exogenous fluctuations of the entrepreneurial net worth can explain a substantial share of volatility of the main macroeconomic variables in the long run. The share of real output volatility explained by the net worth shock is estimated to be the highest in Hungary and lowest in the Czech economy. |
| Related projects: |