Offick, Sven; Winkler, Roland - 2013 - Preliminary and incomplete
This paper explores and quantifies the role of endogenous firm entry in amplifying and propagating shocks to the … economy. To this end, we estimate two DSGE models on US data with Bayesian methods: one model with endogenous firm entry and … entry model does not rely on a fairly flexible supply of labor. The presence of firm entry amplifies the effects of …