Recent studies by Galí and Gertler (1999), Galí, Gertler, and López-Salido (2001), and Sbordone (2001, 2002) have argued that the New Keynesian Phillips curve (Calvo pricing model) is empirically valid, provided that real marginal cost rather than detrended output is used as the variable driving

Entry dynamics as a solution to the puzzling behaviour of real marginal costs in the Ghironi-Melitz model by Alberto Felettigh

Several authors have argued that if the labor share of income is used as the proxy for real marginal cost, then the sticky-price version of the New Keynesian Phillips Curve does a good job of approximating US inflation dynamics. However, this paper argues that the labor share is an inappropriate

In this research, models primarily based on the Highway Economic Requirements System (HERS) are retrofitted to calculate six component marginal costs: Safety, Travel Time, Vehicle Operations, Agency, Emissions, and Noise. Each of these marginal costs is separately obtained for both peak and off

We present a model embodying moderate amounts of nominal rigidities that accounts for the observed inertia in inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these features

This article presents a model of talent investments where two clubs compete for prizes. Our model is based on a general class of cost functions with a constant elasticity of marginal costs with respect to investments. The analysis finds that reduced revenue sharing improves competitive balance

In this paper we verify the conditions under which the marginal cost approach of Berg [6, 7, 8] holds. As observed by Aven and Dekker [2] the validity of the marginal cost approach gives rise to a useful framework of single component maintenance optimization models which covers almost all models

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Abstract: The article is focused to describe several examples of economical and business problems which are solved by using derivations. The examples are used in mathematical courses in the first year of study (the first term) at the Faculty of Economics and Administration.