A Real-Business-Cycle model with robots: Lessons for Bulgaria

  • Aleksandar Vasilev Senior Lecturer, Lincoln International Business School, UK

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

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Published
2021-12-31
How to Cite
VASILEV, Aleksandar. A Real-Business-Cycle model with robots: Lessons for Bulgaria. Journal of Mathematical Economics and Finance, [S.l.], v. 7, n. 2, p. 7-15, dec. 2021. ISSN 2458-0813. Available at: <https://journals.aserspublishing.eu/jmef/article/view/6877>. Date accessed: 03 oct. 2022. doi: https://doi.org/10.14505/jmef.v7.2(13).01.