This paper investigates the effects of introducing imperfect competition in an international business cycle model. We provide some international evidence on markups and analyze the implicactions of increasing returns to scale and monopolistic competition for the effects and the international transmission of technology and government spending shocks. We also consider exogenous markup fluctuations as a source of shocks and of transmission of business cycles.
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Paper provided by European University Institute in its series Economics Working Papers with number
eco96/31.
Length: 42 pages Date of creation: 1996 Date of revision: Handle: RePEc:eui:euiwps:eco96/31
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Find related papers by JEL classification: C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics