Can Shocks to Risk Aversion Explain Business Cycle Fluctuations in Bulgaria (1999–2019)?

Aleksandar Vasilev

Managing Global Transitions, 2021, vol. 19, issue 4 (Winter), 271-284

Abstract: Stochastic risk aversion is introduced into a dynamic general-equilibrium setup augmented with government. The theoretical framework is calibrated to Bulgarian data for the period 1999–2019. The quantitative relevance of shocks to risk aversion is investigated for the propagation of business cycles in the Bulgarian economy. More specifically, the presence of stochastic risk aversion in the theoretical setup improves the fit vis-a-vis data by increasing variability of employment and decreasing the variability of investment. However, those improvements are at the expense of lowering the variability of investment and wages in the model economy.

Keywords: business cycles; stochastic risk aversion; Bulgaria (search for similar items in EconPapers)
JEL-codes: E24 E32 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.hippocampus.si/ISSN/1854-6935/19.271-284.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mgt:youmgt:v:19:y:2021:i:4:p:271-284

Ordering information: This journal article can be ordered from
http://www.mgt.fm-kp.si

DOI: 10.26493/1854-6935.19.271-284

Access Statistics for this article

Managing Global Transitions is currently edited by Jana Hojnik

More articles in Managing Global Transitions from University of Primorska, Faculty of Management Koper Contact information at EDIRC.
Bibliographic data for series maintained by Alen Jezovnik ().