¶ Countercyclical markups and news-driven business cycles

pdf link

¶ BibTeX

@article{pavlov2013countercyclical,
  title={Countercyclical markups and news-driven business cycles},
  author={Pavlov, Oscar and Weder, Mark},
  journal={Review of Economic Dynamics},
  volume={16},
  number={2},
  pages={371--382},
  year={2013},
  publisher={Elsevier}
}

¶ Abstract

The standard one-sector real business cycle model is unable to generate expectations-driven fluctuations. The addition of countercyclical markups and modest investment adjustment costs offers an easy fix to this conundrum. The simulated model replicates the regular features of U.S. aggregate fluctuations.

¶ My Notes

This paper, as well as the other papers it cites, seems like it may be useful for brainstorming 3102 teaching examples.