Pavlov, O and Weder, M, Countercyclical markups and news-driven business cycles, Review of Economic Dynamics, 16, (2) pp. 371-382. ISSN 1094-2025 (2013) [Refereed Article]
Copyright 2013 Elsevier Inc.
The standard one-sector real business cycle model is unable to generate expectations-driven fluctuations. The addition of countercyclical markups and modest investment adjustment costs offers an easy fix to this conundrum. The simulated model replicates the regular features of U.S. aggregate fluctuations.
|Item Type:||Refereed Article|
|Keywords:||wxpectations-driven business cycles, markups|
|Research Group:||Applied Economics|
|Research Field:||Applied Economics not elsewhere classified|
|Objective Division:||Economic Framework|
|Objective Field:||Macroeconomics not elsewhere classified|
|Author:||Pavlov, O (Dr Oscar Pavlov)|
|Web of Science® Times Cited:||5|
|Deposited By:||Tasmanian School of Business and Economics|
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