Buss, Ginters; Grüning, Patrick - In: Baltic journal of economics 23 (2023) 1, pp. 1-44
We develop a fiscal dynamic stochastic general equilibrium (DSGE) model for policy simulation and scenario analysis …, and fiscal rules for each fiscal instrument. The model features a search-and-matching labour market friction with pro …-cyclical labour costs, a financial accelerator mechanism, and import content in final goods. We estimate the model using Latvian data …