Are Habits Important for the Propagation of Business Cycle Fluctuations in Bulgaria?
Bulgarian Economic Papers (www.bep.bg) from St Kliment Ohridski University of Sofia, Faculty of Economics and Business Administration / Center for Economic Theories and Policies
We introduce internal consumption habits into a real-business-cycle setup augmented with a detailed government sector. We calibrate the model to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2016). We investigate the quantitative importance of the presence of internal consumption habits motive for the propagation cyclical uctuations in Bulgaria. Allowing for habits in consumption improves the model performance against data, and in addition this extended setup dominates the standard RBC model framework without habits, e.g., Vasilev (2009).
Keywords: Business fluctuations; consumption habits; Bulgaria (search for similar items in EconPapers)
JEL-codes: E32 E22 E37 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-dge, nep-mac and nep-tra
Date: 2018-09, Revised 2018-09
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://www.uni-sofia.bg/index.php/eng/content/dow ... file/BEP-2018-09.pdf First version, 2018 (application/pdf)
Working Paper: Are habits important for the propagation of business cycle fluctuations in Bulgaria? (2018)
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-2018-09
Access Statistics for this paper
More papers in Bulgarian Economic Papers (www.bep.bg) from St Kliment Ohridski University of Sofia, Faculty of Economics and Business Administration / Center for Economic Theories and Policies Contact information at EDIRC.
Bibliographic data for series maintained by Teodor Sedlarski ().