scholarly journals Partisan Cycles and the Consumption Volatility Puzzle

2011 ◽  
Author(s):  
Marina Azzimonti ◽  
Matthew Talbert
Keyword(s):  
Consumption Volatility ◽  
Volatility Puzzle

scholarly journals The role of inventories for the propagation of aggregate fluctuations: lessons for Bulgaria (1999–2019)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aleksandar Vasilev
Keyword(s):  
Business Cycle ◽  
Design Methodology ◽  
Aggregate Fluctuations ◽  
Content Type ◽  
Consumption Volatility ◽  
Business Cycle Fluctuations ◽  
The Government ◽  
Rbc Models ◽  
Quantitative Importance

PurposeIn this study, inventories are introduced as a productive input into a real-business-cycle (RBC) setup augmented with the government.Design/methodology/approachThe model is calibrated to Bulgarian data for the period 1999–2019. The quantitative importance of the presence of inventories is investigated.FindingsThe quantitative effect of inventories is found to be important: decreasing consumption volatility and increasing employment variability. Those results, however, are at the expense of decreasing wage volatility and increasing investment volatility, and generally worsening the contemporaneous correlations of the main variables with output.Originality/valueFluctuations in inventory levels matter for business cycle fluctuations in Bulgaria, which is a novel result. Still, there is a need for more research on the incorporation of inventories into RBC models to better fit the Bulgarian experience.

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