 A business-cycle model with money-in-utility (MIU) and government sector: the case of Bulgaria (1999-2020)EconStor Open Access Articles and Book Chapters, 2022, vol. forthcoming, issue forthcoming Abstract: Purpose: We augment an otherwise standard business cycle model with a richer government sector, and add money-in-utility (MIU) considerations to study economic fluctuations. Design/methodology/approach: More specifically, real money balances enter in a non-separable way with consumption and leisure. This specification is then calibrated to Bulgarian data after the introduction of the currency board (1999-2020), gives a role to money in accentuating economic fluctuations. Findings: This novel mechanism allows the framework to reproduce - better than the RBC model - the observed variability and correlations among model variables, and those characterizing the labor market in particular. In addition, money is non-neutral and affects aggregate economic activity. Originality: This is the first micro-founded monetary-DSGE model on Bulgaria trying to explain the role of money for economic fluctuations. Keywords: business cycles; money-in-utility (MIU) considerations (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:251948 Access Statistics for this article More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC. |
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