Artikel
An RBC model with non-Ricardian households: Lessons for Bulgaria (1999-2018)
Purpose: We introduce non-Ricardian ("hand-to-mouth") myopic agents into an otherwise standard real-business-cycle (RBC) setup augmented with a detailed government sector.We investigate the quantitative importance of the presence of non-optimizing households for cyclical fluctuations in Bulgaria. Design Methodology/approach: We calibrate the RBC model to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2018). Findings: We find that the inclusion of such non-Ricardian households improves model performance along several dimensions and generally provides a better match vis-a-vis data, as compared to the standard model populated with Ricardian agents only. Originality/value: This is a novel finding in the macroeconomic studies on Bulgaria using modern quantitative methods.
- Language
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Englisch
- Bibliographic citation
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Journal: Journal of Economics and Development ; ISSN: 1859-0020 ; Year: 2020 ; Issue: Forthcoming ; Bingley: Emerald
- Classification
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Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Business Fluctuations; Cycles
- Subject
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business cycles
non-Ricardian households
hand-to-mouth
myopic behavior
Bulgaria
- Event
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Geistige Schöpfung
- (who)
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Vasilev, Aleksandar
- Event
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Veröffentlichung
- (who)
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Emerald
ZBW – Leibniz Information Centre for Economics
- (where)
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Bingley
- (when)
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2020
- Handle
- Last update
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10.03.2025, 11:46 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Vasilev, Aleksandar
- Emerald
- ZBW – Leibniz Information Centre for Economics
Time of origin
- 2020
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