Endogenous Market Structures and the Business Cycle
Bibliographic Data
| ID | 9717018 |
|---|---|
| Authors | Federico Etro (0000-0002-7184-8696, 1Ca’ Foscari University of Venice), Andrea Colciago (0000-0002-8526-0957, University of Milan, Bicocca) |
| Year | 2010 |
| Volume | 120 |
| Issue | 549 |
| Pages | 1201-1233 |
| Publication date | 2010-12-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2010.02384.x |
| OpenAlex | W2152329050 |
| Language | EN |
| Citations received | 7 |
| References cited | 27 |
We characterise endogenous market structures under Bertrand and Cournot competition in a DSGE model. Short-run mark ups vary countercyclically because of the impact of entry on competition. Long-run mark ups are decreasing in the discount factor and in productivity, and increasing in the exit rate and in the entry costs. Dynamic inefficiency can emerge due to excessive entry under Cournot competition. Positive temporary shocks attract entry, which strengthens competition so as to reduce the mark ups temporarily and increase real wages: this competition effect creates an intertemporal substitution effect which boosts consumption and employment. Endogenous market structures improve the ability of a flexible prices model in matching impulse response functions and second moments for US data. Copyright (C) The Author(s). Journal compilation (C) Royal Economic Society 2010
Bertrand competition · Bertrand paradox (economics) · Business cycle · Competition (biology · Consumption (sociology · Cournot competition · Dynamic stochastic general equilibrium · Economics · Inefficiency · Macroeconomics · Microeconomics · Monetary economics · Monetary policy · Oligopoly · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact
A political economy perspective on horizontal FDI in a dynamic Cournot-oligopoly with endogenous entry
Reforms and the real exchange rate
Endogenous overhead costs, firm size, and fiscal shocks
The Market for Paintings in Italy During the Seventeenth Century
Stackelberg Competition with Endogenous Entry
Endogenous Market Structures and Optimal Taxation
Monopolistic Competition When Income Matters
Understanding the Effects of Government Spending on Consumption
Time to Build and Aggregate Fluctuations
Markups, Gaps, and the Welfare Costs of Business Fluctuations
Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity
Competition, Market Selection and Growth
Innovation by Leaders
| Citations per year | 0.39 |
|---|---|
| Citation span | 2008 - 2020 (13) |
| Highly cited | No |