"Energy Economics outlines the fundamental issues and possible solutions to the challenges of energy production and use, presenting a framework for decisions based upon sound economic analysis. This approach considers market forces and policy goals, including economic prosperity, environmental...

The paper presents an incomplete competition model (ICM), where inflation is determined jointly with unit labour cost growth. The ICM is estimated on data for the Euro area and evaluated against existing models, i.e. the implicit inflation equation of the Area Wide model (AWM) - cf. Fagan, Henry...