Titre
Firm entry, markups and the monetary transmission mechanism
Type
article
Institution
UNIL/CHUV/Unisanté + institutions partenaires
Périodique
Auteur(s)
Lewis, V.
Auteure/Auteur
Poilly, C.
Auteure/Auteur
Liens vers les personnes
Liens vers les unités
ISSN
0304-3932
Statut éditorial
Publié
Date de publication
2012-11
Volume
59
Numéro
7
Première page
670
Dernière page/numéro d’article
685
Peer-reviewed
Oui
Langue
anglais
Résumé
Two business cycle models with endogenous firm and product entry are estimated by matching impulse responses to a monetary policy shock. The 'competition effect' implies that entry lowers desired markups and dampens inflation. Under translog preferences, where the substitutability between goods depends on their number, we find evidence of such an effect. That model generates more countercyclical markups than monopolistic competition model, where price stickiness is the only source of markup fluctuations. In contrast, a model with strategic interactions between oligopolistic firms cannot generate an empirically relevant competition effect and is statistically equivalent to the Dixit-Stiglitz model.
PID Serval
serval:BIB_5BF6421896E2
Date de création
2012-11-08T09:03:00.775Z
Date de création dans IRIS
2025-05-20T20:22:50Z