Markups and fiscal transmission in a panel of OECD countries

dc.contributor.author	Juessen, Falko
dc.contributor.author	Linnemann, Ludger
dc.date.accessioned	2010-06-10T14:42:40Z
dc.date.available	2010-06-10T14:42:40Z
dc.date.issued	2010-06-10T14:42:40Z
dc.description.abstract	This paper studies the role of the markup of price over marginal cost for the transmission of fiscal policy shocks. We construct time series of markups allowing for fluctuations in capacity utilization and total factor productivity and use an aggregate production function that is more general than Cobb-Douglas. Including the constructed markup series in a panel vector autoregression with annual OECD data, we find that a positive shock to government spending substantially lowers markups while raising output, consumption, real interest rates, and government debt. The positive output response appears to result mainly from the positive reaction of capital utilization rather than from the one of hours worked. JEL classification: E62, E32, C33	en
dc.identifier.uri	http://hdl.handle.net/2003/27264
dc.identifier.uri	http://dx.doi.org/10.17877/DE290R-8727
dc.language.iso	en	de
dc.relation.ispartofseries	Discussion Paper / SFB 823 ; 23/2010
dc.subject	Fiscal policy	en
dc.subject	Government spending	en
dc.subject	Markup	en
dc.subject	Panel VAR	en
dc.subject.ddc	310
dc.subject.ddc	330
dc.subject.ddc	620
dc.title	Markups and fiscal transmission in a panel of OECD countries	en
dc.type	Text	de
dc.type.publicationtype	report	de
dcterms.accessRights	open access

Files

Now showing 1 - 1 of 1

Now showing 1 - 1 of 1