Arbeitspapier
The competition effect in business cycles
How do changes in market structure affect the US business cycle? We estimate a monetary DSGE model with endogenous rm/product entry and a translog expenditure function by Bayesian methods. The dynamics of net business formation allow us to identify the 'competition effect', by which desired price markups and inflation decrease when entry rises. We find that a 1 percent increase in the number of competitors lowers desired markups by 0.18 percent. Most of the cyclical variability in inflation is driven by markup fluctuations due to sticky prices or exogenous shocks rather than endogenous changes in desired markups.
- Sprache
-
Englisch
- Erschienen in
-
Series: IMFS Working Paper Series ; No. 51
- Klassifikation
-
Wirtschaft
Bayesian Analysis: General
Macroeconomics: Production
Business Fluctuations; Cycles
- Thema
-
Bayesian estimation
business cycles
competition
entry
markups
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Lewis, Vivien
Stevens, Arnoud
- Ereignis
-
Veröffentlichung
- (wer)
-
Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2012
- Handle
- URN
-
urn:nbn:de:hebis:30:3-240835
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Lewis, Vivien
- Stevens, Arnoud
- Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS)
Entstanden
- 2012
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