Publication details
DSGE Monetary Business Cycle Model
| Authors | |
|---|---|
| Year of publication | 2007 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 25th International Conference Mathematical Methods in Economics 2007 |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | DSGE model; cash-in-advance approach; Bayesian estimation; Metropolis Hastings algorithm |
| Description | The paper deals with the cash-in-advance (CIA) dynamic stochastic general equilibrium macroeconomic model. The CIA models incorporate money into the neoclassical DSGE framework in order to analyze monetary issues and the business cycles. The CIA approach stresses the medium-of-exchange function of money. Money is directly used to purchase consumption goods. First part of the paper describes the CIA model. Then, the model is solved. Model parameters are estimated with Bayesian technique on the quarterly Czech economy data. The final part investigates estimation results and impulse responses for the Czech economy. |
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