A Real-Business-Cycle model with energy use: Lessons for Bulgaria (1999-2018)

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


We introduce energy as a productive input into a real-business-cycle model with 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 presence of energy, and the potential relevance of energy price shocks as driving forces behind the observed business cycle fluctuations in Bulgaria. In particular, a positive shock to energy prices in the model works like a negative technological shock. Allowing for the presence of energy as a factor of production does not substantially improves the model performance against data, and is thus an unlikely driver of business cycle fluctuations in Bulgaria.


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How to Cite
VASILEV, Aleksandar. A Real-Business-Cycle model with energy use: Lessons for Bulgaria (1999-2018). Journal of Mathematical Economics and Finance, [S.l.], v. 9, n. 2, p. 23 - 37, dec. 2023. ISSN 2458-0813. Available at: <https://journals.aserspublishing.eu/jmef/article/view/8309>. Date accessed: 17 apr. 2024. doi: https://doi.org/10.14505/jmef.v9.2(17).02.