A Note on Industry Dynamics and Countercyclical Markups

• 발행기관: 서울대학교 경제연구소
• 저자명: 김영식(Young Sik Kim)
• 간행물 정보: 『경제논집』경제논집 47권 2호, 245~252쪽, 전체 7쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2008.06.30

영문 초록

In order to explain countercyclical markups, a simple two-period model of industry dynamics is constructed where output is produced potentially by two firms which are subject to idiosyncratic productivity shocks as well as aggregate productivity shocks. During booms, both firms with low and high productivity stay in the market and engage in a Bertrand-type competition to yield marginal-cost pricing, implying zero markups. During recessions, however, firm with low productivity shock decides to exit, allowing the high-productivity firm to enjoy positive markups as a monopolist in the output market.

목차

Abstract

1. Environment

2. Equilibrium

References