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A Real-business-cycle Model with a Stochastic Capital Share: Lessons for Bulgaria (1999–2018)
| Content Provider | SAGE Publishing |
|---|---|
| Author | Vasilev, Aleksandar |
| Copyright Year | 2020 |
| 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.JEL Classification: E24, E32 |
| Related Links | https://journals.sagepub.com/doi/pdf/10.1177/0973801020901362?download=true |
| Starting Page | 107 |
| Ending Page | 121 |
| Page Count | 15 |
| ISSN | 00252921 |
| Issue Number | 1 |
| Volume Number | 14 |
| Journal | Margin: The Journal of Applied Economic Research (MAR) |
| e-ISSN | 09738029 |
| DOI | 10.1177/0973801020901362 |
| Language | English |
| Publisher | Sage Publications India |
| Publisher Date | 2020-02-28 |
| Publisher Place | New Delhi |
| Access Restriction | Open |
| Rights Holder | © 2020 National Council of Applied Economic Research |
| Subject Keyword | Stochastic Capital Share Business Cycles Fluctuations Bulgaria |
| Content Type | Text |
| Resource Type | Article |
| Subject | Development Economics, Econometrics and Finance |
