Markups and Entry in a DSGE Model

Lilia Cavallari

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides a DSGE model with firm entry. Simulations show that the model matches the synchronization of markups and entry observed in the data while at the same time reproducing empirically plausible moments for key macroeconomic variables. Sticky prices are essential for these results.

Keywords: endogenous entry; firm dynamics; monopolistic competition; market power; markups (search for similar items in EconPapers)
JEL-codes: E32 E37 (search for similar items in EconPapers)
Date: 2012-10-08
New Economics Papers: this item is included in nep-com, nep-dge and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:41816

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