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 …

differs across individual, monopolistically competitive firms in each country. Firms face a sunk entry cost in the domestic … productivity and entry or trade costs induce firms to enter and exit both their domestic and export markets, thus altering the …

productivity before making an irreversible investment to enter the industry. Entry into the export market is also costly, but the …