We find that immigrant workers do not affect changes in the Czech wage structure between 2002 and 2006 despite their substantial inflows. Instead, using the Albrecht et al. (2003) version of the Machado and Mata (2005) decomposition technique along the wage distribution, we find that changes in...

The goal of this paper is to examine business cycle synchronization between the Czech economy and the euro area via a fully specified DSGE model. Using a two-country DSGE model I decompose the observed variables into the contributions of structural shocks and then compute conditional...

The aim of this paper is to investigate the presence of a causality relationship between the stock market and the foreign exchange market in the Czech Republic, Hungary, Poland, and Turkey. We first analyze the existence of structural breaks in the variance of stock and foreign exchange rate...

This study estimates bank efficiencies and their determinants for a sample of 11 Central and Eastern European Countries (CEEC) over the 2005–2008 period. Contrary to previous studies, we estimated cost and revenue efficiency using Data Envelopment Analysis (DEA), which allowed us to focus on...

This article analyzes the transmission of financial systemic stress from the euro area to the Czech Republic. We employ a recently developed composite indicator of systemic stress (CISS), which has a unique construction reflecting the correlations between markets and so captures the systemic...

Estimation of the control premium remains one of the main concerns in the financial literature: different approaches take into consideration synergistic effects, agency problems, and the bargaining power of different agents. We estimated the level of the control premium and its determinants for...

The recent financial crisis emphasized the need for effective financial stability analyses and tools for detecting systemic risk. This paper looks at the assessment of banking sector resilience through stress testing. We argue such analyses are valuable even in emerging economies, which suffer...

This article empirically analyzes the phenomenon of financial integration, focusing primarily on assessing the impacts of the current financial crisis. We start our analysis with an overview of cost-benefit considerations associated with the process of financial integration. We go on to examine...

The concept of an optimum-currency-area (or OCA) index has often been used to assess the relative proximity of various pairs of economies to the ideal of an optimum currency area. In this paper, we suggest improving the construction of the index in several ways, primarily by making it sensitive...