Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/337535 
Year of Publication: 
2025
Citation: 
[Journal:] East Asian Economic Review (EAER) [ISSN:] 2508-1667 [Volume:] 29 [Issue:] 3 [Year:] 2025 [Pages:] 337-369
Publisher: 
Korea Institute for International Economic Policy (KIEP), Sejong-si
Abstract: 
This paper sets up a medium-scale small open economy TANK model with incomplete markets to address business cycles in Korea extensively. The estimated model via Bayesian estimation methodology shows that the fraction of households who lack access to financial markets increased from 30 percent to 40 percent after the Asian Financial Crisis. This feature appears to be associated with structural changes in employment practices, including life-time employment and seniority-based salaries, as well as an increase in part-time jobs after the crisis. Since the mid-1970s, domestic markup, government spending, and risk premium shocks have been key factors influencing business cycles in Korea.
Subjects: 
Bayesian Estimation
Business Cycles
Constrained Households
TANK Model
JEL: 
E32
F31
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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