Vasilev, Aleksandar (2021) A real-business-cycle model with human capital accumulation: lessons for Bulgaria (1999-2018). Macroeconomics and Finance in Emerging Market Economies . pp. 1-15. ISSN 1752-0843
Full content URL: https://doi.org/10.1080/17520843.2021.1937259
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Item Type: | Article |
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Item Status: | Live Archive |
Abstract
We introduce human capital accumulation into a real-business-cycle setup. 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 presence of skill acquisition for cyclical fluctuations in Bulgaria. After subjecting the model to a battery of tests, we find the quantitative effect of such a channel – aside from producing a moderate increase in the variability of hours – to be relatively small. In other words, government spending on education turns out to be an ineffective instrument when it comes to smoothing the cycle.
Keywords: | business cycles, human capital, Bulgaria |
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Subjects: | L Social studies > L130 Macroeconomics |
Divisions: | Lincoln International Business School |
ID Code: | 46874 |
Deposited On: | 11 Oct 2021 13:24 |
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