Variety matters

dc.contributor.author	Pavlov, O.
dc.contributor.author	Weder, M.
dc.date.issued	2012
dc.description.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. © 2011 Elsevier B.V..
dc.description.statementofresponsibility	Oscar Pavlov, Mark Weder
dc.identifier.citation	Journal of Economic Dynamics and Control, 2012; 36(4):629-641
dc.identifier.doi	10.1016/j.jedc.2011.12.003
dc.identifier.issn	0165-1889
dc.identifier.issn	1879-1743
dc.identifier.uri	http://hdl.handle.net/2440/72830
dc.language.iso	en
dc.publisher	Elsevier Science BV
dc.rights	Copyright © 2011 Elsevier B.V. All rights reserved.
dc.source.uri	https://doi.org/10.1016/j.jedc.2011.12.003
dc.subject	Sunspot equilibria
dc.subject	Indeterminacy
dc.subject	Markups
dc.subject	Variety effects
dc.subject	Business cycles
dc.title	Variety matters
dc.type	Journal article
pubs.publication-status	Published

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