(Smith 1962) and recent theoretical results (Dufwenberg et al. 2008) suggest that competition forces people to behave as if …

We estimate the macroeconomic benefits and international spillovers of an increase in competition using a general …-equilibrium simulation model with nominal rigidities and monopolistic competition in product and labor markets. We draw three conclusions … after calibrating the model to the euro area against the rest of the industrial world. First, greater competition produces …

financial system in which there is intense competition among banks for private households' funds. Following earlier work by … contracts is restrained by households' financial market access. However, we also assume spatial monopolistic competition among … monopoly rents also entails a positive effect; however, this beneficial effect is only relevant if competition among banks does …

and economic activity have declined in recent years. These results have implications for investors, bank regulators, and …

to monetary policy differs across small banks that are affiliated with the same bank holding company but operate in … affects the response of bank lending. We find evidence that the negative response of bank loan growth to a monetary …