Business Cycles in Bulgaria and the Baltic Countries: An RBC Approach

Aleksandar Vasilev

EconStor Conference Papers from ZBW - Leibniz Information Centre for Economics

Abstract: This paper explores the business cycle in Bulgaria and the Baltic countries: Estonia, Latvia and Lithuania during the 1993-2005 period. The paper aims at deepening the understanding of the nature of output fluctuations. The neoclassical approach will be employed, much in the spirit of the Real Business Cycle (RBC) literature, which gives a general equilibrium picture of the transition process. The model used in this paper follows the methodology of King, Plosser and Rebelo (1988). Calibration parameters, taken from data on Bulgarian and Baltic economies, are used in the estimation procedure. Both the model and data series show that the major drop in output was due to productivity. In addition, the timing of the banking reforms coincides with the improvement of economic performance. This is a strong indication that banking regulations in place were crucial for the output performance throughout the period in Bulgaria and the Baltic countries, a finding that has important implications for economic policy.

Keywords: real business cycles; Bulgaria and the Baltic countries; total factor productivity (search for similar items in EconPapers)
JEL-codes: C68 E32 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/141828/1/V ... oria_proceedings.pdf (application/pdf)

Related works:
Working Paper: Business Cycles in Bulgaria and the Baltic Countries: An RBC Approach (2016)
Journal Article: Business cycles in Bulgaria and the Baltic countries: an RBC approach (2009)
Journal Article: Business cycles in Bulgaria and the Baltic countries: an RBC approach (2009)
Book: Business Cycles in Bulgaria and the Baltic Countries: An RBC Approach (2006)
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:zbw:esconf:141828

Access Statistics for this paper

More papers in EconStor Conference Papers from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().