Article ID Journal Published Year Pages File Type
965493 Journal of Macroeconomics 2012 13 Pages PDF
Abstract
► We study the role of price-marginal cost markups in the transmission of .scal policy shocks. ► Empirical estimates are presented for a bias-corrected panel vector autoregression using OECD data. ► We find that markups decline in response to positive shocks to government spending. ► Further, variable capacity utilization seems to play a key role for .scal transmission.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Markups and fiscal transmission in a panel of OECD countries
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