Vasilev, Aleksandar (2020) A Real-business-cycle Model with a Stochastic Capital Share: Lessons for Bulgaria (1999–2018). Margin: The Journal of Applied Economic Research, 14 (1). pp. 107-121. ISSN 0973-8010
Full content URL: https://doi.org/10.1177/0973801020901362
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| Item Type: | Article |
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| Item Status: | Live Archive |
Abstract
We allow for a stochastic capital share into a real-business-cycle setup with a government
sector. We calibrate the model to Bulgarian data for the period following the introduction
of the currency board arrangement (1999–2018). We investigate the quantitative
importance of the variability in capital share for cyclical fluctuations in Bulgaria. In
particular, allowing for a stochastic capital share in the model increases variability of
investment and employment, at the cost of decreasing the volatility of wages, and causing
employment to become countercyclical.
| Keywords: | Business Cycles Fluctuations, Stochastic Capital Share, Bulgaria |
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| Subjects: | L Social studies > L130 Macroeconomics |
| Divisions: | Lincoln International Business School |
| ID Code: | 40985 |
| Deposited On: | 08 Jul 2020 10:19 |
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