Similar Search Results

Markov Perfect Industry Dynamics with Many Firms

Weintraub, Gabriel - 2005

We propose an approximation method for analyzing Ericson and Pakes (1995)-style dynamic models of imperfect competition. We develop a simple algorithm for computing an ``oblivious equilibrium,'' in which each firm is assumed to make decisions based only on its own state and knowledge of the long...

Persistent link: https://www.econbiz.de/10012466771

Undertstanding the Home Market Effect and the Gravity Equation : The Role of Differentiating Goods

Feenstra, Robert C. - 1998

This paper argues that the theoretical foundations for the gravity equation are general, while the empirical performance of the gravity equation is specific to the type of goods examined. Most existing theory for the gravity equation depends on the assumption of differentiated goods. We show...

Persistent link: https://www.econbiz.de/10012472009

Anonymous Market and Group Ties in International Trade

Casella, Alessandra - 1997

When trade involves differentiated products, preferential ties to a group settled abroad facilitate an exporter's entry into the foreign market by providing information and access to distribution channels. This contrasts with the difficulties experienced by an unattached producer unfamiliar with...

Persistent link: https://www.econbiz.de/10012472628

A Critical Assessment of the Role of Imperfect Competition in Macroeconomics

Carlton, Dennis W. - 1996

New Keynesian models and some models of growth rely on market power for their results. This sole focus on market power as the source for certain macroeconomic phenomena is misguided both theoretically and empirically. New Keynesian multipliers are closely related to standard measures of...

Persistent link: https://www.econbiz.de/10012473051

Dynamic General Equilibrium Models with Imperfectly Competitive Product Markets

Rotemberg, Julio J. - 1993

This paper discusses the consequences of introducing imperfectly competitive product markets into an otherwise standard neoclassical growth model. We pay particular attention to the consequences of imperfect competition for the explanation of fluctuations in aggregate economic activity. Market...

Persistent link: https://www.econbiz.de/10012474443

Markups : A Search-Theoretic Perspective

Menzio, Guido - National Bureau of Economic Research - 2024

I derive a formula for the equilibrium distribution of markups in the search- theoretic model of imperfect competition of Butters (1977), Varian (1980), and Burdett and Judd (1983). The level of markups and the sign of the relationship between a seller's markup and its size depends on the extent...

Persistent link: https://www.econbiz.de/10015056214

The More We Die, The More We Sell? A Simple Test of the Home-Market Effect

Costinot, Arnaud - 2016

countries with larger demand for some products at home tend to have larger sales of the same products abroad. In this paper, we … demand. We find that the correlation between predicted home demand and sales abroad is positive and greater than the … correlation between predicted home demand and purchases from abroad. In short, countries tend to be net sellers of the drugs that …

Persistent link: https://www.econbiz.de/10012456141

Beyond Competitive Devaluations : The Monetary Dimensions of Comparative Advantage

Bergin, Paul R. - 2019

Motivated by the long-standing debate on the pros and cons of competitive devaluation, we propose a new perspective on how monetary and exchange rate policies can contribute to a country's international competitiveness. We refocus the analysis on the implications of monetary stabilization for a...

Persistent link: https://www.econbiz.de/10012479715

Productivity Spillovers, Terms of Trade and the "Home Market Effect"

Corsetti, Giancarlo - 2005

demand has macroeconomic implications that are similar to those of a reduction in firms' entry costs …

Persistent link: https://www.econbiz.de/10012467520

Vertical Differentiation in Frictional Product Markets

Albrecht, James W.; Menzio, Guido; Vroman, Susan B. - National Bureau of Economic Research - 2021

We consider a version of the imperfect competition model of Butters (1977), Varian (1980) and Burdett and Judd (1983) in which sellers make an ex-ante investment in the quality of their variety of the product. Equilibrium exists, is unique and is efficient. In equilibrium, search frictions not...

Persistent link: https://www.econbiz.de/10012794645

1
2
3
4
5
6
7
8
9
10
Next
Last