The macroeconomics of subsistence points
By: Morten O. Ravn, Stephanie Schmitt-Grohe, Martin Uribe.
Contributors: Schmitt-Grohe, Stephanie.; Uribe, Martin.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11012; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11012.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This 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"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/4/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.