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face a fall in output, mark-ups and profits, and the average productivity of survivors increases. These pro …
Persistent link: https://www.econbiz.de/10005015447
industry productivity and social welfare. For this purpose we develop a reciprocal dumping model of international trade with … heterogeneous firms and endogenous R&D. We identify two effects of trade liberalization on productivity: a direct effect through … low (high) trade costs; (ii) increases expected industry productivity; and (iii) raises expected social welfare if trade …
Persistent link: https://www.econbiz.de/10005755216
This paper contributes to Hübler (2008) who analyses a partial equilibrium model of outsourcing with Cournot competition in intermediate good production. Final production is located in Western Europe, whereas the intermediate good can be manufactured by a Western (outsourcing) or Eastern...
Persistent link: https://www.econbiz.de/10008559253
We consider two channels via which foreign inputs into industrial production may lead to productivity effects. The … the productivity growth of a particular industry. We show by which institutional mechanism firms are able to share …
Persistent link: https://www.econbiz.de/10005818876
theoretical as well as the quantitative analysis, recommendations are derived for a better allocation of the reduction burden …
Persistent link: https://www.econbiz.de/10005818867
It is conventionally held that countries are worse off by forming a monetary union when it comes to macroeconomic stabilization. However, this conventional view relies on assuming that monetary policy is conducted optimally. Relaxing the assumption of optimal monetary policy not only uncovers...
Persistent link: https://www.econbiz.de/10010886905
In this paper, we show that strategic complementarities–such as firm-specific factors or quasikinked demand–have crucial implications for the design of monetary policy and for the welfare costs of output and inflation variability. Recent research has mainly used log-linear approximations to...
Persistent link: https://www.econbiz.de/10005818787
This paper compares the welfare effects of anticipated and unanticipated cost-push shocks within the canonical New Keynesian model with optimal monetary policy. We find that, for empirically plausible degrees of nominal rigidity, the anticipation of a future cost-push shock leads to a higher...
Persistent link: https://www.econbiz.de/10005818832
Whether countries benefit from forming a monetary union depends critically on the way monetary policy is conducted. This is mainly because monetary policy determines whether and to what extent a flexible nominal exchange rate fosters or hampers macroeconomic stabilization, even if monetary...
Persistent link: https://www.econbiz.de/10010960602
. Applying propensity score matching to control for differences across firms in terms of labor productivity, size, etc., we find …
Persistent link: https://www.econbiz.de/10010886876