The DOI matches its Crossref record; 32 of the 32 references it cites were found in a registry or an index.
Markups, Gaps, and the Welfare Costs of Business Fluctuations
Open accessAbstract
In this paper we present a simple, theory-based measure of the variations in aggregate economic efficiency associated with business fluctuations.We decompose this indicator, which we refer to as "the gap", into two constituent parts: a price markup and a wage markup, and show that the latter accounts for the bulk of the fluctuations in our gap measure.Finally, we derive a measure of the welfare costs of business cycles that is directly related to our gap variable, and which takes into account explicitly the existence of a varying aggregate inefficiency.When applied to postwar U.S. data, for plausible parametrizations, our measure suggests welfare losses of fluctuations that are of a higher order of magnitude than those derived by Lucas (1987).It also suggests that the major postwar recessions involved substantial efficiency costs.
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Cites
Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy
Christiano, L. J., Eichenbaum, M., & Evans, C. L. (2005) · Journal of Political Economy · doi:10.1086/426038 · Cited by 6,238
Inflation dynamics: A structural econometric analysis
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Self-citationBarsky, R. B., Juster, F. T., Kimball, M. S., & Shapiro, M. D. (1997) · The Quarterly Journal of Economics · doi:10.1162/003355397555280 · Cited by 2,400
Optimal monetary policy with staggered wage and price contracts
Erceg, C. J., Henderson, D. W., & Levin, A. T. (2000) · Journal of Monetary Economics · doi:10.1016/s0304-3932(00)00028-3 · Cited by 2,277
Monetary Policy Shocks: What Have We Learned and to What End?
Christiano, L., Eichenbaum, M., & Evans, C. (1998) · National Bureau of Economic Research · doi:10.3386/w6400 · Cited by 2,157
Bernanke, B. S., & Mihov, I. (1998) · The Quarterly Journal of Economics · doi:10.1162/003355398555775 · Cited by 1,641
Intertemporal Substitution in Consumption
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Monopolistic Competition and the Effects of Aggregate Demand
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Resuscitating real business cyclesPreprint
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Cited by
Understanding the Effects of Government Spending on Consumption
Galí, J., López-Salido, J. D., & Vallés, J. (2007) · Journal of the European Economic Association · doi:10.1162/jeea.2007.5.1.227 · Cited by 1,922
Self-citationChari, V. V., Kehoe, P. J., & McGrattan, E. R. (2007) · Econometrica · doi:10.1111/j.1468-0262.2007.00768.x · Cited by 874
Investment shocks and business cycles
Justiniano, A., Primiceri, G. E., & Tambalotti, A. (2010) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2009.12.008 · Cited by 869
The Great Depression and the Friedman-Schwartz Hypothesis
Christiano, L. J., Motto, R., & Rostagno, M. (2003) · Journal of Money, Credit, and Banking · doi:10.1353/mcb.2004.0023 · Cited by 434
“Accounting for Factorless Income”
Karabarbounis, L., & Neiman, B. (2018) · doi:10.3386/w24404 · Cited by 48
Metadata
- Authors
- Galí, J., Gertler, M., & López-Salido, J. D.
- Venue
- Review of Economics and Statistics
- Publisher
- MIT Press - Journals
- Published
- 2007-02
- Volume
- 89
- Issue
- 1
- Pages
- 44-59
- ISSN
- 0034-6535 (ISSN-L)
- 1530-9142
- OpenAlex
- W2892380640
- Cited by
- 462
- References
- 32
- FWCI
- 46.78
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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