REGIONAL & MULTI-SECTOR INPUT-OUTPUT MODEL FOR THE CZECH REPUBLIC

Central authorities as well as many other institutions around the world base their economic predictions on simulations of Dynamic Stochastic General Equilibrium models. The Czech central institutions utilize so-called New Keynesian type of DSGE model. Variant of the Czech Ministry of Finance model Hubert will serve as a benchmark model in this study. As well as the original model, the composition of the model will incorporate New Keynesian characteristics such as price or wage stickiness. Furthermore, the model is extended for features which allow a detailed disaggregation of the initial model into eight regions and eight sectors. The generous dataset from the Czech Statistical Office offers aggregate data as well as regional input-output tables. These data allow precise estimation of individual parameters. The applied method can be of use to other analysts or central authorities questioning the varying impact of policies on regional but also sectoral-level.