Endogenous Market Structures and the Business Cycle

Andrea Colciago and Lorenza Rossi
Authors registered in the RePEc Author Service: Federico Etro ()

MPRA Paper from University Library of Munich, Germany

Abstract: We propose a flexible prices model where endogenous market structures and search and matching frictions in the labor market interact endogenously. The interplay between firms endogenous entry, strategic interactions among producers and labor market frictions represents a strong amplification channel of technology shocks on labor market variables, and helps addressing the unemployment-volatility puzzle. Consistently with U.S. evidence, new firms create a large fraction of new jobs and grow faster than more mature firms, net firms' entry is procyclical and the price mark up is countercyclical.

Keywords: Endogenous Market Structures; Firms' Entry; Search and Matching Frictions (search for similar items in EconPapers)
JEL-codes: E24 E32 L11 (search for similar items in EconPapers)
Date: 2011-02
New Economics Papers: this item is included in nep-bec, nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Endogenous Market Structures and the Business Cycle (2010)
Chapter: Endogenous Market Structures and Business Cycles (2009)
Working Paper: Endogenous Market Structure and the Business Cycle (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:29629

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