The macroeconomics of subsistence points / Morten O. Ravn, Stephanie Schmitt-Grohe, Martin Uribe Ravn, Morten O

User activity

Share to:
View the summary of this work
Ravn, Morten O
Consumption (Economics); Demand functions (Economic theory); Markup - Mathematical models.
"This paper explores the macroeconomic consequences of preferences displaying a subsistence point. It departs from the existing related literature by assuming that subsistence points are specific to each variety of goods rather than to the composite consumption good. We show that this simple feature makes the price elasticity of demand for individual goods procyclical. As a result, markups behave countercyclically in equilibrium. This implication is in line with the available empirical evidence"--National Bureau of Economic Research web site.
Work ID

User activity

e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this work

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this work

Add a comment

Show comments and reviews from Amazon users