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Imperfect Competition and the Effects of Energy Price Increases on Economic Activity

Rotemberg, Julio J.; Woodford, Michael - 2021

We show that modifying the standard neoclassical growth model by assuming that competition is imperfect makes it easier to explain the size of the declines in output and real wages that follow increases in the price of oil. Plausibly parameterized models of this type are able to mimic the...

Persistent link: https://www.econbiz.de/10013226560