Stochastic shocks to aggregate labor supply elasticity are introduced into a real-business-cycle setup augmented with a detailed government sector. The model is calibrated to Bulgarian data for the period following the introduction of the currency board arrange-ment (1999-2018). The quantitative...

This paper aims to shed light on the importance of health considerations for business cycle fluctuations and the effect of health status on labour productivity and availability of labour input for productive use. To this end, Grossman's (2000) partial‐equilibrium framework with endogenous...

We augment an otherwise standard business cycle model with a richer government sector, and add a modified Cash-in-Advance (CIA) considerations. In particular, the CIA constraint of Cole (2020) is extended to include private investment and government consumption, and allows a proportion of total...

We augment an otherwise standard business cycle model with a richer government sector, and add a stochastic costly credit production as in Benk et al. (2005), and a modified Cash in Advance (CIA) consideration. In particular, the cash in advance constraint of Cole (2020) is extended to include...