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dc.contributor.authorRAVN, Morten O.
dc.contributor.authorSCHMITT-GROHE, Stephanie
dc.contributor.authorURIBE, Martin
dc.date.accessioned2011-04-19T12:49:19Z
dc.date.available2011-04-19T12:49:19Z
dc.date.issued2008
dc.identifier.citationMacroeconomic Dynamics, 2008, 12, 136-147
dc.identifier.issn1365-1005
dc.identifier.urihttp://hdl.handle.net/1814/16600
dc.description.abstractThis 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.
dc.language.isoen
dc.publisherCambridge Univ Press
dc.subjectnonhomothetic preferences
dc.subjecttime-varying markups
dc.subjectbusiness cycles
dc.titleMacroeconomics of Subsistence Points
dc.typeArticle
dc.identifier.doi10.1017/S1365100507070095
dc.neeo.contributorRAVN|Morten O.|aut|
dc.neeo.contributorSCHMITT-GROHE|Stephanie|aut|
dc.neeo.contributorURIBE|Martin|aut|
dc.identifier.volume12
dc.identifier.startpage136
dc.identifier.endpage147
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