Front Matter Page
Office of the Executive Director
Authorized for distribution by W. Kiekens
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
References
Figures
1. Czech policy relevant variables
2. Czech balance of payment
3. Long-run convergence projection
Table
Summary of model parameters