Countercyclical Markups and News-Driven Business Cycles

The standard one-sector real business cycle model is unable to generate expectations-driven business cycles. The current paper shows that this conundrum can be solved by adding countercyclical markups and modest capital adjustment costs.

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Year of publication:	2011-07
Authors:	Weder, Mark ; Pavlov, Oscar
Institutions:	School of Economics, University of Adelaide
Subject:	expectations-driven business cycles \| markups

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Extent:	application/pdf
Series:	School of Economics Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 2011-28 16 pages
Classification:	E32 - Business Fluctuations; Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009228613