Bilbiie, Florin; Ghironi, Fabio; Melitz, Marc - HAL - 2012
determination of the number of producers and products over the business cycle. Economic expansions induce higher entry rates by … prospective entrants subject to irreversible investment costs. The sluggish response of the number of producers (due to sunk entry … decisions, producer entry, and the allocation of labor across sectors. The model performs at least as well as the benchmark real …