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 |
|
|
![]() |
PDF
RBC_Uzawa_endogenous_discounting_accepted_2021.pdf - Whole Document Restricted to Repository staff only 277kB | |
|
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