A Real-Business-Cycle model with robots: Lessons for Bulgaria

Aleksandar Vasilev

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: Robots are introduced into a real-business-cycle setup augmented with a detailed government sector. Robots are modeled as an imperfect substitute for labor services. The model is calibrated to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2020). The quantitative importance of the presence of robots in the economy is investigated for business cycle fluctuations in Bulgaria. In the presence of robots, wages increase, but employment falls after a technology shock. However, for plausible parameter values, the effect is predicted to be quite small.

Keywords: business cycles; robots (search for similar items in EconPapers)
JEL-codes: E24 E32 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-cwa, nep-dge, nep-mac and nep-tra
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https://www.econstor.eu/bitstream/10419/243348/1/RBC_robots_2021.pdf (application/pdf)

Related works:
Working Paper: A Real-Business-Cycle model with robots: Lessons for Bulgaria (2022)
Journal Article: A Real-Business-Cycle model with robots: Lessons for Bulgaria (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:243348

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