Journal
ECONOMIC MODELLING
Volume 26, Issue 6, Pages 1245-1269Publisher
ELSEVIER
DOI: 10.1016/j.econmod.2009.06.001
Keywords
Two-country DSGE; Bayesian estimation; Heterogeneity
Categories
Ask authors/readers for more resources
This paper presents a two-country model linking Poland and the euro area and applies it for assessment of heterogeneity across these two regions. Overall, our results can be seen as rather inconclusive about the differences in parameters describing agents' decision-making in Poland and in the euro area. On the contrary, we find strong evidence for heterogeneity in terms of volatility and synchronization of shocks hitting both economies. Our results may be viewed as a step towards estimating the costs of Poland's entry to the European Monetary Union. associated with giving up the monetary autonomy and losing benefits from stabilizing movements of the exchange rate. (C) 2009 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available