idea in a general equilibrium model with endogenous price flexibility and entry-exit. Faced with higher productivity … uncertainty, firms set prices more flexibly. This improves their resilience, reducing exit and output losses in response to …

, and the distribution of technology productivities in the economy, (i) chooses whether to remain in the industry or to exit … exit decisions, aggregate output, profits and distributions of firm productivities vary, (a) across different demand … increased exit of low-productivity firms and then to improved distributions of firms at all future dates and states. Finally, it …

' inflation aversion and exit costs. …

defines an optimal firm size. Changes to the number of firms is subject to adjustment costs, so that the entry dynamics is …