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Quantifying Market Power and Business Dynamism in the Macroeconomy

De Loecker, Jan; Eeckhout, Jan; Mongey, Simon - National Bureau of Economic Research - 2021

We propose a general equilibrium economy with oligopolistic output markets in which two channels can cause a change in market power: (i) technology, via changes to productivity shocks and the cost of entry, (ii) market structure, via changes to the number of potential competitors. First, we...

Persistent link: https://www.econbiz.de/10012533310

A Tale of Two Networks : Common Ownership and Product Market Rivalry

Ederer, Florian; Pellegrino, Bruno - National Bureau of Economic Research - 2022

general equilibrium model with a hedonic demand system in which firms compete in a network game of oligopoly. Firms are …

Persistent link: https://www.econbiz.de/10013191098

Voting Choice

Malenko, Andrey; Malenko, Nadya - National Bureau of Economic Research - 2023

Traditionally, fund managers cast votes on behalf of investors whose capital they manage. Recently, this system has … come under intense debate given the growing concentration of voting power among a few asset managers and disagreements over … environmental and social issues. Major fund managers now offer their investors a choice: delegate their votes to the fund or cast …

Persistent link: https://www.econbiz.de/10014337868

Estimating Discrete Games with Many Firms and Many Decisions : An Application to Merger and Product Variety

Fan, Ying; Yang, Chenyu - National Bureau of Economic Research - 2022

This paper presents a new method for estimating discrete games based on bounds of conditional choice probabilities. The method does not require solving the game and is scalable to models with many firms and many discrete decisions. We apply the method to study merger effects on firm entry and...

Persistent link: https://www.econbiz.de/10013334365

Price Setting with Strategic Complementarities as a Mean Field Game

Alvarez, Fernando; Lippi, Francesco; Souganidis, Takis - National Bureau of Economic Research - 2022

We study the propagation of monetary shocks in a sticky-price general-equilibrium economy where the firms' pricing strategy feature a complementarity with the decisions of other firms. In a dynamic equilibrium the firm's price-setting decisions depend on aggregates, which in turn depend on...

Persistent link: https://www.econbiz.de/10013334411

How Merger Synergies Can Harm Consumers : A Defense of the Efficiencies Offense

Ramos, Paulo; Wollmann, Thomas G. - National Bureau of Economic Research - 2024

This paper uses an aggregative games framework to predict consumer welfare when market structure is endogenously determined. Our main results characterize mergers whose synergies reduce consumer welfare by inducing rivals to exit. The conditions under which such mergers arise are broad,...

Persistent link: https://www.econbiz.de/10014576659

Policymakers' Uncertainty

Cieślak, Anna; Hansen, Stephen; McMahon, Michael; … - National Bureau of Economic Research - 2023

Uncertainty is a ubiquitous concern emphasized by policymakers. We study how uncertainty affects decision-making by the Federal Open Market Committee (FOMC). We distinguish between the notion of Fed-managed uncertainty vis-a-vis uncertainty that emanates from within the economy and which the Fed...

Persistent link: https://www.econbiz.de/10014436980

The Central Bank's Dilemma : Look Through Supply Shocks or Control Inflation Expectations?

Beaudry, Paul; Carter, Thomas J.; Lahiri, Amartya - National Bureau of Economic Research - 2023

When countries are hit by supply shocks, central banks often face the dilemma of either looking through such shocks or reacting to them to ensure that inflation expectations remain anchored. In this paper, we propose a tractable framework to capture this dilemma and explore optimal policy under...

Persistent link: https://www.econbiz.de/10014372498

The Analytic Theory of a Monetary Shock

Alvarez, Fernando; Lippi, Francesco - National Bureau of Economic Research - 2021

We propose an analytical method to analyze the propagation of a once-and-for-all shock in a broad class of sticky price models. The method is based on the eigenvalue- eigenfunction representation of the dynamics of the cross-sectional distribution of firms' desired adjustments. A key novelty is...

Persistent link: https://www.econbiz.de/10012482680

Liquidity, Liquidity Everywhere, Not a Drop to Use - Why Flooding Banks with Central Bank Reserves May Not Expand Liquidity

Acharya, Viral V.; Rajan, Raghuram Govind - National Bureau of Economic Research - 2022

Central bank balance sheet expansion is financed by commercial banks. It involves not just a substitution of liquid central bank reserves for other assets held by commercial banks, but also a counterpart alteration in commercial bank liabilities, such as in short-term deposits issued to finance...

Persistent link: https://www.econbiz.de/10012814455