Title of article
Firm entry,markupsandthemonetarytransmissionmechanism
Author/Authors
Vivien Lewis، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2012
Pages
16
From page
670
To page
685
Abstract
Two businesscyclemodelswithendogenousfirmandproductentryareestimatedby
matchingimpulseresponsestoamonetarypolicyshock.The‘competitioneffect’
impliesthatentrylowersdesiredmarkupsanddampensinflation.Undertranslog
preferences,wherethesubstitutabilitybetweengoodsdependsontheirnumber,we
find evidenceofsuchaneffect.Thatmodelgeneratesmorecountercyclicalmarkups
than DixitandStiglitz(1977) monopolisticcompetitionmodel,wherepricestickinessis
theonlysourceofmarkupfluctuations.Incontrast,amodelwithstrategicinteractions
betweenoligopolisticfirmscannotgenerateanempiricallyrelevantcompetitioneffect
and isstatisticallyequivalenttotheDixit–Stiglitzmodel
Journal title
Journal of Monetary Economics
Serial Year
2012
Journal title
Journal of Monetary Economics
Record number
846550
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