Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/234137 
Year of Publication: 
2021
Citation: 
[Journal:] Macroeconomics and Finance in Emerging Market Economies [ISSN:] 1752-0851 [Issue:] forthcoming [Publisher:] Taylor & Francis [Place:] London [Year:] 2021
Publisher: 
Taylor and Francis, London
Abstract: 
We introduce human capital accumulation into a real-business-cycle setup. 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 presence of skill acquisition for cyclical fluctuations in Bulgaria. After subjecting the model to a battery of tests, we find the quantitative effect of such a channel - aside from producing a moderate increase in the variability of hours - to be relatively small. In other words, government spending on education turns out to be an ineffective instrument when it comes to smoothing the cycle.
Subjects: 
business cycles
human capital
Bulgaria
JEL: 
E32
E24
H22
I21
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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