A Real-Business-Cycle Model with Endogenous Discounting and a Government Sector

Vasilev, Aleksandar (2022) A Real-Business-Cycle Model with Endogenous Discounting and a Government Sector. Notas Economicas, 54 (1). pp. 71-84. ISSN 0872-4733

Full content URL: https://doi.org/10.14195/2183-203X_54_4

Documents
A Real-Business-Cycle Model with Endogenous Discounting and a Government Secto
Authors' Accepted Manuscript
A Real-Business-Cycle Model with Endogenous Discounting and a Government Sector
Published Open Access manuscript
[img]
[Download]
[img] PDF
RBC_Uzawa_endogenous_discounting_accepted_2021.pdf - Whole Document
Restricted to Repository staff only

277kB
[img]
Preview
PDF
11585-Texto do Artigo-49363-1-10-20220602.pdf - Whole Document
Available under License Creative Commons Attribution 4.0 International.

702kB
Item Type:Article
Item Status:Live Archive

Abstract

We introduce an endogenous discount factor as in Uzawa (1968) and Schmitt-Grohe and Uribe (2003) into a real-business-cycle setup with government sector and Greenwood et al. (1988) preferences. We calibrate the artificial economy to Bulgarian data for the period after the currency board arrangement was introduced (1999-2018). In particular, we look into the quantitative importance of endogenous discounting for the propagation of cyclical fluctuations in Bulgaria. We conclude that the presence of an endogenous discount factor improves the model, and that the extended setup performs better than the standard RBC model framework with a constant discount factor (e.g. Vasilev, 2009).

Keywords:Business cycles, Uzawa preferences, endogenous discounting, Bulgaria
Subjects:L Social studies > L130 Macroeconomics
Divisions:Lincoln International Business School
Related URLs:
ID Code:49648
Deposited On:20 Jun 2022 09:25

Repository Staff Only: item control page