A Real-Business-Cycle model with human capital accumulation: Lessons for Bulgaria (1999-2018)

Aleksandar Vasilev

EconStor Open Access Articles and Book Chapters, 2021, issue forthcoming

Abstract: We introduce human capital accumulation into a real-business-cycle setup. We calibrate the model to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2018). We investigate the quantitative importance of the presence of skill acquisition for cyclical fluctuations in Bulgaria. After subjecting the model to a battery of tests, we find the quantitative effect of such a channel - aside from producing a moderate increase in the variability of hours - to be relatively small. In other words, government spending on education turns out to be an ineffective instrument when it comes to smoothing the cycle.

Keywords: business cycles; human capital; Bulgaria (search for similar items in EconPapers)
JEL-codes: E24 E32 H22 I21 (search for similar items in EconPapers)
Date: 2021
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Journal Article: A real-business-cycle model with human capital accumulation: lessons for Bulgaria (1999-2018) (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:234137

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