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Boehm, Christoph - 2020

We provide evidence that industries' supply curves are convex. To guide our empirical analysis, we develop a putty-clay model in which capacity constraints at the plant level generate convex supply curves at the industry level. The model's key insight is that an industry's capacity utilization...

Persistent link: https://www.econbiz.de/10012479352

Transition Dynamics in Vintage Capital Models : Explaining the Postwar Catch-Up of Germany and Japan

Gilchrist, Simon - 2004

We consider a neoclassical interpretation of Germany and Japan's rapid postwar growth that relies on a catch-up mechanism through capital accumulation where technology is embodied in new capital goods. Using a putty-clay model of production and investment, we are able to capture many of the key...

Persistent link: https://www.econbiz.de/10012467958

Investment, Capacity, and Uncertainty : A Putty-Clay Approach

Gilchrist, Simon - 2004

We embed the microeconomic decisions associated with investment under uncertainty, capacity utilization, and machine replacement in a general equilibrium model based on putty-clay technology. In the presence of irreversible factor proportions, a mean-preserving spread in the productivity of...

Persistent link: https://www.econbiz.de/10012468247

Putty-Clay and Investment : A Business Cycle Analysis

Gilchrist, Simon - 1998

This paper develops a dynamic stochastic general equilibrium model with putty-clay technology that incorporates embodied technology, investment irreversibility, and variable capacity utilization. Low short-run capital-labor substitutability native to the putty-clay framework induces the...

Persistent link: https://www.econbiz.de/10012472001

Sticky Prices, Coordination and Collusion

Driscoll, John C. - 1999

New Keynesian models of price setting under monopolistic competition involve two kinds of inefficiency: the price level is too high because firms ignore an aggregate demand externality, and when there are costs of changing prices, price stickiness may be an equilibrium response to changes in...

Persistent link: https://www.econbiz.de/10012471622

Collusion, Mergers, and Related Antitrust Issues

Asker, John; Nocke, Volker - National Bureau of Economic Research - 2021

research in the areas of collusion and merger enforcement. Research relating to both collusion and mergers has made significant … advances in the last twenty years. With respect to collusion, this includes important theoretical and empirical work on the …

Persistent link: https://www.econbiz.de/10012616623

Does Entry Remedy Collusion? Evidence from the Generic Prescription Drug Cartel

Starc, Amanda; Wollmann, Thomas G. - National Bureau of Economic Research - 2022

the cartel's internal operations to regulatory filings and market data. We find that collusion induces significant entry …

Persistent link: https://www.econbiz.de/10013172185

Quotas and the Stability of Implicit Collusion

Rotemberg, Julio J. - 1986

from a model in which the firms are assumed to sustain collusion by the threat …

Persistent link: https://www.econbiz.de/10012477124

Trade Restrictions as Facilitating Practices

Krishna, Kala - 1985

This paper deals with the effect of trade restrictions on competition in oligopolistic markets. Quantitative restrictions, such as VER's (Voluntary Export Restrictions) are shown to affect the extent to which foreign firms can compete in the domestic market, and hence to raise the equilibrium...

Persistent link: https://www.econbiz.de/10012477540

Collusive Investments in Technological Compatibility : Lessons from U.S. Railroads in the Late 19th Century

Gross, Daniel P. - 2019

Collusion is widely condemned for its negative effects on consumer welfare and market efficiency. In this paper, I show … that collusion may also in some cases facilitate the creation of unexpected new sources of value. I bring this possibility … develop a model of compatibility choice in a collusive market and argue that collusion may have enabled the gauge change to …

Persistent link: https://www.econbiz.de/10012480205