A Real-Business-Cycle model with robots: Lessons for Bulgaria

Vasilev, Aleksandar (2021) A Real-Business-Cycle model with robots: Lessons for Bulgaria. Journal of Mathematical Economics and Finance, 7 (2). pp. 7-15. ISSN 2458-0813

Full content URL: https://doi.org/10.14505/jmef.v7.2(13).01

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A Real-Business-Cycle model with robots: Lessons for Bulgaria
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Abstract

Robots are introduced into a real-business-cycle setup augmented with a detailed government sector. Robots are modelled as an imperfect substitute for labour services. The model is calibrated to Bulgarian data for the period following the intro- duction of the currency board arrangement (1999-2020). The quantitative importance of the presence of robots in the economy is investigated for business cycle fluctuations in Bulgaria. In the presence of robots, wages increase, but employment falls after a technology shock. However, for plausible parameter values, the effect is predicted to be quite small.

Keywords:business cycles, robots, Bulgaria
Subjects:L Social studies > L140 Econometrics
L Social studies > L130 Macroeconomics
Divisions:Lincoln International Business School
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ID Code:48816
Deposited On:31 May 2022 12:02

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