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Variety matters

Citation

Pavlov, O and Weder, M, Variety matters, Journal of Economic Dynamics and Control, 36 pp. 629-641. ISSN 0165-1889 (2012) [Refereed Article]

Copyright Statement

Copyright 2011 Elsevier

DOI: doi:10.1016/j.jedc.2011.12.003

Abstract

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.

Item Details

Item Type:Refereed Article
Keywords:Sunspot equilibria; Indeterminacy; Markups; Variety effects; Business cycles
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
Author:Pavlov, O (Dr Oscar Pavlov)
ID Code:110897
Year Published:2012
Web of Science® Times Cited:6
Deposited By:Tasmanian School of Business and Economics
Deposited On:2016-08-22
Last Modified:2017-11-27
Downloads:0

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