This paper analyzes the macroeconomic effects of fluctuations in the marginal tax rates of consumption and income. To this end, stochastic tax rates are introduced as in Braun (1992), into a real-business-cycle setup augmented with a detailed government sector. The model is calibrated to...

We introduce an informal sector into a real-business-cycle setup augmented with a detailed government sector. We calibrate the model to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2016). We investigate the quantitative importance of the...

Habits in leisure a la Kydland and Prescott (1982) 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 (1999-2022). The quantitative...

National debt sustainability is a very topical discussion, as it continues to increase each year for many countries. This analysis is on the UK, one of the most advanced economies, using macroeconomic theories to study the national debt and its effects. This study was split into different...