Imperfect Competition and the Dynamics of Mark-ups

Britton, Erik; Larsen, Jens; Small, Ian M.

doi:10.2139/ssrn.228875

Cited by 20 publications

(17 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The steady-state rate of depreciation, δ, is calibrated such that the steady-state investment-tooutput ratio is consistent with the sample average investment-to-output ratio, and takes a value of 1.67% per quarter in our model. This is somewhat lower than Burnside and Eichenbaum's (1996) value and that implicit in the Bank of England's Macroeconometric Model, (13) but is similar to the estimated value for the UK reported in Britton, Larsen and Small (2000).…”

Section: ρ Xsupporting

confidence: 79%

Factor Utilisation and Productivity Estimates for the United Kingdom

2002

Self Cite

View full text Add to dashboard Cite

show abstract

Section: ρ Xsupporting

confidence: 79%

Factor Utilisation and Productivity Estimates for the United Kingdom

2002

Self Cite

View full text Add to dashboard Cite

show abstract

“…The steady‐state rate of depreciation, δ , is calibrated such that the steady‐state investment to output ratio is consistent with the sample average investment to output ratio, and takes a value of 1.67% per quarter in our model. This is somewhat lower than Burnside and Eichenbaum's (1996) value and that implicit in the Bank of England's Macroeconometric Model (see Bank of England, 1999), but is similar to the estimated value for the UK reported in Britton, Larsen and Small (2000).…”

Section: Calibrationsupporting

confidence: 76%

Factor Utilization and Adjusted Productivity Estimates for the UK*

2006

View full text Add to dashboard Cite

This paper derives series for capital utilization, labour effort and total factor productivity (TFP) for the UK from a general equilibrium model with variable utilization and labour adjustment costs. Capital utilization tracks survey-based measures closely, but persistent movements in total hours worked mean our labour effort series is not as highly correlated with its comparators. Our estimated TFP series is less cyclical than the traditional Solow residual, although a weighted average of capital utilization and labour effort - aggregate factor utilization - and the Solow residual are not closely related. Copyright Bank of England 2007.

show abstract

“…The discount factor, β = (0.99) 120 (0.99 per quarter), is standard in the real-business-cycle literature. The value of the elasticities of substitution across intermediates, η = 4.3, implies a markup for monopolistic firms equal to 1.3, in the middle of the range of 1.2-1.4 suggested by international evidence [Britton et al (2000), Gali et al (2007)]. The standing-on-shoulders effect parameter, ψ = 0.35, reflects the baseline simulation parameter of Strulik et al (2013 : p. 429) that is well-known as a numerical study of the R&D-based OLG model.…”

Section: The Model Parameterizationmentioning

confidence: 97%

HIGHER EDUCATION SUBSIDY POLICY AND R&D-BASED GROWTH

Morimoto

Tabata

2019

Macroecon. Dynam.

View full text Add to dashboard Cite

We examine how a subsidy policy for encouraging more individuals to pursue higher education affects economic growth in an overlapping generations model of R&D-based growth, including both product development and process innovation. We show that such a policy may have a negative effect on the long-run economic growth rate. When the market structure adjusts partially in the short run, the effect of an education subsidy on economic growth is ambiguous and depends on the values of the parameters. However, when the market structure adjusts fully in the long run, the education subsidy expands the number of firms but reduces economic growth. These unfavorable predictions of an education subsidy on economic growth are partly consistent with the empirical findings that mass higher education does not necessarily lead to higher economic growth.

show abstract

Imperfect Competition and the Dynamics of Mark-ups

Cited by 20 publications

References 7 publications

Factor Utilisation and Productivity Estimates for the United Kingdom

Factor Utilisation and Productivity Estimates for the United Kingdom

Factor Utilization and Adjusted Productivity Estimates for the UK*

HIGHER EDUCATION SUBSIDY POLICY AND R&D-BASED GROWTH

Contact Info

Product

Resources

About