Search and Matching Frictions and Business Cycle Fluctuations in Bulgaria

Aleksandar Vasilev

International Journal of Business and Economics, 2020, vol. 19, issue 3, 319-340

Abstract: This research investigates the quantitative importance of search and matching frictions in Bulgarian labor market, by augmenting an otherwise standard real business cycle a la Long and Plosser (1983) with a two-sided costly search and fiscal policy. This strong propagation mechanism allows the model to capture the business cycles in Bulgaria better than earlier models. The model performs well with the given data, especially along the labor market dimension, and dominates the market-clearing labor market framework featured in the standard RBC model, e.g. Vasilev (2009), as well as the indivisible labor market extension in Hansen (1985).

Keywords: General Equilibrium; Unemployment and Wages; Business Cycle; Fiscal Policy (search for similar items in EconPapers)
JEL-codes: D51 E24 E32 J40 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Search and matching frictions and business cycle fluctuations in Bulgaria (2020)
Working Paper: Search and Matching Frictions and Business Cycle Fluctuations in Bulgaria (2016)
Working Paper: Search and matching frictions and business cycle fluctuations in Bulgaria (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ijb:journl:v:19:y:2020:i:3:p:319-340

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