Arbeitspapier

An RBC model with Epstein-Zin (non-expected-utility) recursive preferences: lessons from Bulgaria (1999-2016)

We introduce Epstein-Zin (1989, 1991) preferences into a real-business-cycle setup augmented with a detailed government sector. We calibrate the model to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2016). We investigate the quantitative importance of the presence of "early resolution of uncertainty" motive for the propagation of cyclical fluctuations in Bulgaria. Allowing for Epstein-Zin preferences improves the model performance against data, and in addition this extended setup dominates the standard RBC model framework, e.g., Vasilev (2009).

Sprache
Englisch

Klassifikation
Wirtschaft
Business Fluctuations; Cycles
Investment; Capital; Intangible Capital; Capacity
Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications
Thema
business cycle fluctuations
Epstein-Zin preferences
Bulgaria

Ereignis
Geistige Schöpfung
(wer)
Vasilev, Aleksandar
Ereignis
Veröffentlichung
(wer)
ZBW – Leibniz Information Centre for Economics
(wo)
Kiel, Hamburg
(wann)
2018

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Vasilev, Aleksandar
  • ZBW – Leibniz Information Centre for Economics

Entstanden

  • 2018

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