European Parliament Library

The Convergence Dynamics of a Transition Economy :, The Case of the Czech Republic, Jan Bruha, Jiri Podpiera, Stanislav Polak

Creator
Abstract
In this paper we develop a two-country dynamic general equilibrium model by means of which we seek to explain the long-run paths of a converging emerging market economy. We borrow a paradigm from the New Open Economy Macroeconomics literature and amend it to address specific features such as initial asymmetry in development and size of economies as well as different speed of capital accumulation. Using a calibration of productivity and deep parameters for the Czech economy we demonstrate the ability of the model to consistently replicate dynamics in key macroeconomic variables that are essential inputs for commonly used "gap models" in monetary policy routine. Based on the calibration we draw implications for future convergence of the Czech economy
Table Of Contents
Contents; I. Introduction; II. Some stylized facts; III. The two-country model; A. Firms; Market structure; Optimal plans; B. Household behavior; C. General equilibrium; D. Note on real exchange rate; IV. Calibration and Projections; A. Czech policy relevant variables; B. Czech GDP components; C. Czech balance of payments; D. Long-run convergence projection; V. Conclusion; VI. Appendix: Detailed derivation of the model; A. Model equations under particular functional forms; B. Model in the recursive form; Dynamic equations; Static equations; C. Numerical methods; Figures
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (50 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613828910

Library Locations

  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
    Borrow
  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
    Borrow
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
    Borrow