A Real-Business-Cycle model with robots: Lessons for Bulgaria
Abstract
Robots are introduced into a real-business-cycle setup augmented with a detailed government sector. Robots are modeled as an imperfect substitute for labor services. The model is calibrated to Bulgarian data for the period following the intro- duction of the currency board arrangement (1999-2020). The quantitative importance of the presence of robots in the economy is investigated for business cycle fluctuations in Bulgaria. In the presence of robots, wages increase, but employment falls after a technology shock. However, for plausible parameter values, the effect is predicted to be quite small.
References
[2]. National Statistical Institute (2021) Aggregate Statistical Indicators. Available on-line at www.nsi.bg Accessed on Feb 21, 2021.
[3]. Vasilev, A. (2018) "A Real-Business-Cycle model with pollution and environmental taxation: the case of Bulgaria," Journal of Environmental Economics and Policy 7 (4), 441-451.
[4]. Vasilev, A. (2017a) "Business Cycle Accounting: Bulgaria after the introduction of the currency board arrangement (1999-2014), European Journal of Comparative Economics, 14(2): 197-219.
[5]. Vasilev, A. (2017b) "A Real-Business-Cycle model with e_ciency wages and a government sector: the case of Bulgaria," Central European Journal of Economics and Econometrics, 9(4): 359-377.
[6]. Vasilev, A. (2017c) "A Real-Business-Cycle model with reciprocity in labor relations and fiscal policy: the case of Bulgaria," Bulgarian Economic Papers BEP 03-2017, Center for Economic Theories and Policies, Sofia University St. Kliment Ohridski, Faculty of Economics and Business Administration, Sofia, Bulgaria.
[7]. Vasilev, A. (2017d) "VAT Evasion in Bulgaria: A General-Equilibrium Approach," Review of Economics and Institutions, 8(2): 2-17.
[8]. Vasilev, A. (2016) "Progressive taxation and (in) stability in an endogenous growth model with human capital accumulation," Journal of Economics and Econometrics 59 (2), 1-15
[9]. Vasilev, A. (2015a) "Welfare effects of at income tax reform: the case of Bulgaria," Eastern European Economics 53(2): 205-220.
[10]. Vasilev, A. (2015b) "Welfare gains from the adoption of proportional taxation in a general-equilibrium model with a grey economy: the case of Bulgaria's 2008 at tax reform," Economic Change and Restructuring, 48(2): 169-185.
The Copyright Transfer Form to ASERS Publishing (The Publisher)
This form refers to the manuscript, which an author(s) was accepted for publication and was signed by all the authors.
The undersigned Author(s) of the above-mentioned Paper here transfer any and all copyright-rights in and to The Paper to The Publisher. The Author(s) warrants that The Paper is based on their original work and that the undersigned has the power and authority to make and execute this assignment. It is the author's responsibility to obtain written permission to quote material that has been previously published in any form. The Publisher recognizes the retained rights noted below and grants to the above authors and employers for whom the work performed royalty-free permission to reuse their materials below. Authors may reuse all or portions of the above Paper in other works, excepting the publication of the paper in the same form. Authors may reproduce or authorize others to reproduce the above Paper for the Author's personal use or for internal company use, provided that the source and The Publisher copyright notice are mentioned, that the copies are not used in any way that implies The Publisher endorsement of a product or service of an employer, and that the copies are not offered for sale as such. Authors are permitted to grant third party requests for reprinting, republishing or other types of reuse. The Authors may make limited distribution of all or portions of the above Paper prior to publication if they inform The Publisher of the nature and extent of such limited distribution prior there to. Authors retain all proprietary rights in any process, procedure, or article of manufacture described in The Paper. This agreement becomes null and void if and only if the above paper is not accepted and published by The Publisher, or is with drawn by the author(s) before acceptance by the Publisher.