Abstract
We demonstrate that the cyclical behaviour of markups is re- lated to the cyclical behaviour of government spending. For plau- sible parameter assumptions, pro-cyclical spending results in less counter-cyclical mark-ups. Evidence for thirteen OECD countries conÖrms a weak version of this hypothesis.
| Original language | English |
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| Place of Publication | Barcelona |
| Publisher | IREA |
| Number of pages | 9 |
| Volume | 2012 |
| Publication status | Published - 2012 |
Publication series
| Name | IREA working paper series |
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