Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/243165 
Year of Publication: 
2021
Citation: 
[Journal:] Journal of Mathematical Economics and Finance [ISSN:] 2458-0813 [Issue:] forthcoming [Publisher:] ASERS Publishing [Place:] Craiova [Year:] 2021
Publisher: 
ASERS Publishing, Craiova
Abstract: 
We introduce Epstein-Zin (1989, 1991) preferences into a real-business-cycle (RBC) model with government. We calibrate the model economy to Bulgarian data for the period after the currency board regime (1999-2018). We evaluate the quantitative importance of the presence of "early resolution of uncertainty" motive for the propagation of cyclical fluctuations in Bulgaria. Allowing for Epstein-Zin preferences improves the model performance against data, and in addition this extended setup dominates the standard RBC model framework, e.g., Vasilev (2009).
Subjects: 
business cycle flucuations
Epstein-Zin preferences
Bulgaria
JEL: 
E32
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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