Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/222444 
Year of Publication: 
2020
Citation: 
[Journal:] Macroeconomics and Finance in Emerging Market Economies [ISSN:] 1752-0851 [Issue:] forthcoming [Publisher:] Taylor and Francis [Place:] London [Year:] 2020
Publisher: 
Taylor and Francis, London
Abstract: 
We introduce government investment into a real-business-cycle setup. We calibrate the model to Bulgarian data for the period 1999-2018. We then proceed to quantitatively evaluate the effect of the public capital accumulation channel as a tool for business cycle propagation, as well the importance of public investment spending on output growth. Government investment shocks, in the absence of other technological disturbances, turn out to be unable to account for observed business cycles in Bulgaria. On the other hand, government investment may be able to increase subsequent output growth, but that effect is estimated to be quite small.
Subjects: 
business cycles
government investment
Bulgaria
JEL: 
E32
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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