Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/233514
Authors: 
Vasilev, Aleksandar
Year of Publication: 
2021
Citation: 
[Journal:] Journal of Mathematical Economics and Finance [ISSN:] 2458-0813 [Issue:] forthcoming
Abstract: 
We allow for an endogenous depreciation rate of physical capital stock into a real-business-cycle model with a government sector. We calibrate the model to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2018). We investigate the quantitative importance of the endogenous depreciation rate, and indirectly, the capital utilization mechanism for cyclical fluctuations in Bulgaria. Allowing for endogenous variations in the depreciation rate of capital improves the model performance against data, and in addition this extended setup dominates the standard RBC model framework with constant depreciation and a fi xed utilization rate of physical capital, and a fixed depreciation tate e.g., Vasilev (2009).
Subjects: 
Business cycle fluctuations
capital utilization rate
endogenous depreciation rate
Bulgaria
JEL: 
E32
E22
E37
URL of the first edition: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

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