NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Income Dispersion and Counter-Cyclical Markups

Chris Edmond, Laura Veldkamp

NBER Working Paper No. 14452
Issued in October 2008

---- Acknowledgements -----

We thank George Alessandria, David Backus, Mark Bils, Mark Gertler, Carlos Garriga, Aubhik Khan, John Leahy, Emi Nakamura, Nick Souleles, Harald Uhlig, Lawrence Uren, Stijn Van Nieuwerburgh, Pierre-Olivier Weill, Michael Woodford, Randy Wright, and seminar participants at Columbia, Tokyo, Princeton, UCLA, NYU, Philadelphia FRB, Rochester, Iowa, Oslo, Melbourne and the 2008 Washington University in St Louis conference on money, credit and policy, the 2007 New York area monetary policy meetings, 2007 AEA and 2006 SED meetings for helpful comments and conversations. We especially thank Jeff Campbell whose detailed suggestions greatly improved the paper. Laura Veldkamp also thanks Princeton University for their hospitality and financial support through the Kenen fellowship. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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