Markups and the Welfare Cost of Business Cycles: A Reappraisal

Gali, Gertler, and Lopez-Salido (2007) recently show quantitatively that fluctuations in the efficiency of resource allocation do not generate sizable welfare costs. In their economy, which is distorted by monopolistic competition in the steady state, we show that they underestimate the welfare cost...

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Bibliographic details
Volume:	44
Main Author:	JEAN-OLIVIER HAIRAULT FRANÇOIS LANGOT
Format:	Journal Article
Language:	English
Place of publication:	Malden, USA Wiley Subscription Services 01.08.2012 Blackwell Publishing Inc WILEY Wiley
published in:	Journal of money, credit and banking Vol. 44; no. 5; pp. 995 - 1014
Data of publication:	20120801
ISSN:	0022-2879 1538-4616
EISSN:	1538-4616
Discipline:	Economics Business
Bibliography:	Jean‐Olivier Hairault flangot@univ‐lemans.fr We thank two anonymous referees for their particularly helpful remarks and suggestions. We are also indebted to Paul Beaudry, Jean‐Pascal Bénassy, Florin Bilbiie, and Franck Portier for helpful comments. Any errors and omissions are ours. François Langot is a Professor at Le Mans University (E‐mail ) is a Professor at Paris School of Economics (E‐mail joh@univ‐paris1.fr .
Subjects:	Consumption Steady state economies Price shocks Economic fluctuations Keynesianism SHORTER PAPERS, DISCUSSIONS, AND LETTERS Markups Economic costs Economic efficiency Price fluctuations Cost efficiency business cycle costs E32 New Keynesian macroeconomics E12 inefficiency gap Economics Business & Economics Social Sciences Business, Finance Economics and Finance Humanities and Social Sciences business cycle costs E32 E12 RATIONAL EXPECTATIONS MONETARY-POLICY New Keynesian macroeconomics inefficiency gap New-Keynesian Macroeconomics Business cycle costs
Online Access:	Fulltext
Database:	Social Sciences Citation Index Web of Science - Social Sciences Citation Index - 2012 Web of Knowledge Web of Science Hyper Article en Ligne (HAL) (Open Access) Hyper Article en Ligne (HAL) HAL-SHS: Archive ouverte en Sciences de l'Homme et de la Société Database information Databases - DBIS