Employment and hours appear far more cyclical than dictated by the behavior of productivity and consumption. This … marginal rate of substitution of consumption for leisure. The labor wedge can be broken into a price markup and a wage markup …. Because employee wages may be smoothed versions of the true cyclical price of labor, we instead examine the self-employed and …

model in which markup ratios correspond to the prices of differentiated intermediate inputs relative to the price of … reduces the relative price of intermediates and thereby mimics the output effects from an increase in competition. In an open … economy, domestic output is stimulated by reductions in the relative price of foreign intermediates and, therefore, by …

A countercyclical markup of price over marginal cost is the key transmission mechanism for demand shocks in textbook …

a large empirical literature from the 1950's and 60's, that it is necessary to distinguish the response of price to an … two models that can potentially explain these findings. Both break the link between price and marginal cost, thereby … second is driven by firms pricing to limit non-price competition within their market …

to explain the size of the declines in output and real wages that follow increases in the price of oil. Plausibly …

individual firms raises employment (as in the case where the labor market clears) but that wages rise only modestly. In fact … rationed in financial markets, the increase in employment that accompanies the increase in the demand elasticity for individual …

achieve price stability and favor employment stability …In this paper we present a generalized sticky price model which allows, depending on the parameterization, for demand … shocks have expansionary effects regardless of the degree of price stickiness as Real Keynesian parameterizations. We use the …

is that imperfectly competitive firms compete less aggressively during recessions - that is, markups of price over … investments in market share. We provide evidence from the supermarket industry in support of this theory. We show that during …

In this paper we present a simple, theory-based measure of the variations in aggregate economic efficiency associated … price markup and a wage markup, and show that the latter accounts for the bulk of the fluctuations in our gap measure …

countercyclical unless markups of price over marginal cost were themselves countercyclical. We thus examine three theories of markup … theory, markups are chosen to ensure that no one deviates from an (implicitly) collusive understanding. Increases in rates of …