erc/metu
INTERNATIONAL CONFERENCE IN ECONOMICS  IV
September 13-16, 2000, Ankara

Endogenous Determinants of Markups

Esma Gaygısız (METU)

Abstract  

The empirical studies show that during recessions, output prices rise relative to wages. One explanation is that markups of price over marginal costs are countercyclical. In this paper, I analyze models of endogenous markup determination in economies characterized by imperfectly competitive markets. I focus on the endogenus mechanisms that create countercylical markups in these models.

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