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Countercyclical markups and news-driven business cycles


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 Statement

Copyright 2013 Elsevier Inc.

DOI: doi:10.1016/


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 Details

Item Type:Refereed Article
Keywords:wxpectations-driven business cycles, markups
Research Division:Economics
Research Group:Applied economics
Research Field:Applied economics not elsewhere classified
Objective Division:Economic Framework
Objective Group:Macroeconomics
Objective Field:Macroeconomics not elsewhere classified
UTAS Author:Pavlov, O (Dr Oscar Pavlov)
ID Code:110894
Year Published:2013
Web of Science® Times Cited:8
Deposited By:TSBE
Deposited On:2016-08-22
Last Modified:2017-11-27

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