We analyze with panel SVECM the impact of real wage, productivity, labor demand and supply shocks on the eight CEE economies during 1996-2007. We use a set of long-run restrictions, derived from the DSGE model with explicitly modeled labor market, to identify these structural shocks....

In this paper we utilize an open economy DSGE model to analyse factors behind the Great Recession and its transmission into labour markets of selected Southern European countries. We introduce a number of shocks which form potential sources of macroeconomic disturbances, in particular: foreign...