TY - JOUR N2 - In this paper we investigate the quantitative importance of efficiency wages of no-shirking type in explaining business cycle fluctuations in Bulgarian labor markets. This is done by augmenting a relatively standard real business cycle model with unobservable workers effort by employers and efficiency wage contracts, as well as through the inclusion of a detailed government sector. This imperfection in labor markets introduces a strong internal transmission mechanism that allows the model framework to capture the business cycles in Bulgarian data better than earlier models, and setups assuming perfectly-competitive labor markets in particular. L1 - http://journals.pan.pl/Content/106529/PDF/mainFile.pdf L2 - http://journals.pan.pl/Content/106529 PY - 2017 IS - No 4 EP - 377 DO - 10.24425/cejeme.2017.122215 KW - general equilibrium KW - shirking KW - efficiency wages KW - unemployment KW - Bulgaria A1 - Vasilev, Aleksandar PB - Oddział PAN w Łodzi DA - 31.12.2017 T1 - A Real-Business-Cycle Model with Efficiency Wages and a Government Sector: The Case of Bulgaria SP - 359 UR - http://journals.pan.pl/dlibra/publication/edition/106529 T2 - Central European Journal of Economic Modelling and Econometrics ER -