Search and Matching Frictions and Business Cycle Fluctuations in Bulgaria
Bulgarian Economic Papers from Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski
In this paper we investigate the quantitative importance of search and matching fric- tions in Bulgarian labor markets. This is done by augmenting an otherwise standard real business cycle model a la Long and Plosser (1983) with both a two-sided costly search and fiscal policy. This introduces a strong propagation mechanism that allows the model to capture the business cycles in Bulgaria better than earlier models. The model performs well vis-a-vis data, especially along the labor market dimension, and in addition dominates the market-clearing labor market framework featured in the stan- dard RBC model, e.g Vasilev (2009), as well as the indivisible labor extension used in Hansen (1985).
Keywords: general equilibrium; unemployment and wages; business cycles; fiscal policy (search for similar items in EconPapers)
JEL-codes: D51 E24 E32 J40 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2016-02, Revised 2016-02
New Economics Papers: this item is included in nep-bec, nep-dge, nep-lma and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed
Downloads: (external link)
https://www.uni-sofia.bg/index.php/eng/content/dow ... file/BEP-2016-03.pdf First version, 2016 (application/pdf)
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sko:wpaper:bep-2016-03
Access Statistics for this paper
More papers in Bulgarian Economic Papers from Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Teodor Sedlarski ().