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entry and product variety in a sticky-price model with monopolistic competition in which price stability would be optimal in …
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This paper studies the role of endogenous producer entry and product creation for monetary policy analysis and business cycle dynamics in a general equilibrium model with imperfect price adjustment. Optimal monetary policy stabilizes product prices, but lets the consumer price index vary to...
Persistent link: https://www.econbiz.de/10013103258
entry and product variety in a sticky-price model with monopolistic competition in which price stability would be optimal in …
Persistent link: https://www.econbiz.de/10009317643
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This paper studies the role of endogenous producer entry and product creation for monetary policy analysis and business cycle dynamics in a general equilibrium model with imperfect price adjustment. Optimal monetary policy stabilizes product prices, but lets the consumer price index vary to...
Persistent link: https://www.econbiz.de/10012465454
entry and product variety in a sticky-price model with monopolistic competition in which price stability would be optimal in …
Persistent link: https://www.econbiz.de/10012461168
A standard macroeconomic model based on monopolistic competition (Dixit-Stiglitz) does not account for the strategic … behaviors of oligopolistic firms. In this study, we construct a tractable Hotelling duopoly model with price stickiness to … price stickiness. (2) The real effect of monetary policy under duopolistic competition is larger than that in a Dixit …
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