Economics at your fingertips  

A note on labor share, price markup and monetary policy

Shiou-Yen Chu

Economics Letters, 2020, vol. 192, issue C

Abstract: This paper extends Kaplan and Zoch’s (2020) insight that the total labor share is neither solely nor inversely determined by the price markup in a medium scale dynamic stochastic general equilibrium (DSGE) model with nondurables and durables. Our calibration results show that when monetary policy shocks and markup shocks are set to be positively (negatively) correlated, monetary contraction increases (decreases) total labor share and price markup. The total labor share is countercyclical (procyclical) conditional on a monetary policy shock.

Keywords: Labor share; Monetary policy; DSGE models (search for similar items in EconPapers)
JEL-codes: C23 E32 E52 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.econlet.2020.109169

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2021-06-30
Handle: RePEc:eee:ecolet:v:192:y:2020:i:c:s0165176520301300