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:
E32
E12
E32
E12
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