Variety matters
| Data(s) |
01/04/2012
|
|---|---|
| Resumo |
Countercyclical markups are a key transmission mechanism in many endogenous business cycle models. Yet, recent findings suggest that aggregate markups in the US are procyclical. The current model addresses this issue. It extends Galí's (1994) composition of aggregate demand model by endogenous entry and exit of firms and by product variety effects. Endogenous business cycles emerge with procyclical markups that are within empirically plausible ranges. |
| Identificador | |
| Publicador |
Elsevier BV |
| Relação |
DOI:10.1016/j.jedc.2011.12.003 Pavlov, Oscar & Weder, Mark (2012) Variety matters. Journal of Economic Dynamics and Control, 36(4), pp. 629-641. |
| Fonte |
QUT Business School; School of Economics & Finance |
| Palavras-Chave | #140212 Macroeconomics (incl. Monetary and Fiscal Theory) #Sunspot equilibria #Indeterminacy #Markups #Variety effects #Business cycles |
| Tipo |
Journal Article |
