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This paper develops a search-matching model, where producers provide effort to find customers (e.g. in form of advertising and marketing expenditures). Firms form long-term contractual relationships and bargain over prices. The price bargain results in mark up pricing above marginal cost. The...
Persistent link: https://www.econbiz.de/10009276987
This paper estimates the natural real interest rate that is consistent with stable inflation and output at its …
Persistent link: https://www.econbiz.de/10009276957