Naslov
Does the foreign income shock in a small open economy DSGE model fit Croatian data?

Autori
Arčabić, Vladimir ; Globan, Tomislav ; Nadoveza, Ozana ; Rogić Dumančić, Lucija ; Tica, Josip

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
8th International Conference "An Enterprise Odyssey: Saving the Sinking Ship Through Human Capital" Proceedings / Galetić, Lovorka ; Načinović Braje, Ivana ; Jaković, Božidar - Zagreb : Ekonomski fakultet Sveučilišta u Zagrebu, 2016, 351-357

ISBN
978-953-346-027-7

Skup
8th International Conference "An Enterprise Odyssey: Saving the Sinking Ship Through Human Capital"

Mjesto i datum
Zagreb, Hrvatska, 08.06.2016. - 11.06.2016

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
DSGE ; foreign income shocks ; exchange rate ; Croatia ; gross domestic product ; Eurozone

Sažetak
The paper compares theoretical impulse response functions from a DSGE model for a small open economy with an empirical VAR model estimated for the Croatian economy. The theoretical model fits the data well as long as monetary policy is modelled as a fixed exchange rate regime. The paper considers only a foreign output gap shock. A positive foreign shock increases domestic GDP and prices and decreases terms of trade, which is in compliance with theoretical assumptions. Interest rates behave differently than suggested by the estimated DSGE model, which could be explained with an unconventional interest rate transmission channel in Croatia.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA