Skip navigation
Full metadata record
DC FieldValueLanguage
dc.contributor.authorVeldkamp, Laura-
dc.contributor.authorEdmond, Chris-
dc.date.accessioned2008-05-18T13:26:51Z-
dc.date.available2008-05-18T13:26:51Z-
dc.date.issued2007-07-24-
dc.identifier.urihttp://hdl.handle.net/2451/26075-
dc.description.abstractWe construct a model of counter-cyclical markups based on cyclical variation in the dispersion of income across agents. The model is neoclassical in most respects, with monopolistically competitive firms facing a distribution of buyers that changes through time. Income dispersion is high during recessions, which reduces the price elasticity of demand and increases markups applied by firms. Using recent estimates of counter-cyclical income dispersion, we calibrate the model and show that it generates realistic markups as well as other salient features of business cycles.en
dc.language.isoen_USen
dc.relation.ispartofseriesEC-06-13en
dc.subjectbusiness cyclesen
dc.subjectcounter-cyclical markupsen
dc.subjectincome dispersionen
dc.titleIncome Dispersion and Counter-Cyclical Markupsen
dc.typeWorking Paperen
Appears in Collections:Economics Working Papers

Files in This Item:
File Description SizeFormat 
6-13.pdf334.16 kBAdobe PDFView/Open


Items in FDA are protected by copyright, with all rights reserved, unless otherwise indicated.