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Countercyclical markups and news-driven business cycles
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.
History
Publication title
Review of Economic DynamicsVolume
16Pagination
371-382ISSN
1094-2025Department/School
TSBEPublisher
Academic Press Inc Elsevier SciencePlace of publication
525 B St, Ste 1900, San Diego, USA, Ca, 92101-4495Rights statement
Copyright 2013 Elsevier Inc.Repository Status
- Restricted