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How Quantitatively Important are the Shocks to the Time Endowment for Business Cycle Fluctuations? Lessons Learnt From Bulgaria (1999-2018)

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  • Aleksandar Zdravkov Vasilev

    (University of Lincoln, Lincoln International Business School, UK)

Abstract

’Shocks to time endowment are introduced into a real-business-cycle setup augmented with a detailed government sector. The model is calibrated to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2018). The quantitative importance of the presence of shocks to total time available to households is investigated for the magnitude of cyclical fluctuations in Bulgaria. Although hours worked became more volatile, and wages a bit smoother, the quantitative effect of such a shock is found to be small, and thus not very important for the propagation of business cycle fluctuations.’

Suggested Citation

  • Aleksandar Zdravkov Vasilev, 2021. "How Quantitatively Important are the Shocks to the Time Endowment for Business Cycle Fluctuations? Lessons Learnt From Bulgaria (1999-2018)," Notas Económicas, Faculty of Economics, University of Coimbra, issue 52, pages 99-112, july.
    • Handle: RePEc:gmf:journl:y:2020:i:52:p:99:112
    DOI: 10.14195/2183-203X_52_4
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    More about this item

    Keywords

    Business cycles; time endowment shocks; Bulgaria.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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