This paper is concerned with the recent developments of macroeconomic intertemporal general equilibrium models with imperfect competition and variable markups at the business cycle frequency. We first present some empirical puzzles that can be explained by models with cyclical markups, and how...

This article studies the potential links between the value of collateral and the investment decisions made by firms. We show that the use of collateral is an endogenous response to the presence of asymmetric information in financial markets. We then show that permanent shocks to the value of...

This paper uses simple economic theory and cross-country observations to discuss the current process of globalization. The emphasis of the paper is directed at understanding the effects of globalization on between country income inequality and within country inequality. À l’aide d’une...