A Real-Business-Cycle Model with Robots: Lessons for Bulgaria
A Real-Business-Cycle Model with Robots: Lessons for Bulgaria
Author(s): Aleksandar VasilevSubject(s): Economy, National Economy, Business Economy / Management, ICT Information and Communications Technologies
Published by: Софийски университет »Св. Климент Охридски«
Keywords: business cycles; robots; Bulgaria
Summary/Abstract: Robots are introduced into a real-business-cycle setup augmented with a detailed government sector. Robots are modelled as an imperfect substitute for labor services. The model is calibrated to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2020). The quantitative importance of the presence of robots in the economy is investigated for business cycle fluctuations inBulgaria. 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.
Journal: Bulgarian Economic Papers
- Issue Year: 2022
- Issue No: 1
- Page Range: 2-12
- Page Count: 11
- Language: English
