Bertinelli, Luisito; Cardi, Olivier; Sen, Partha - Centre de Recherche en Économie Appliquée (CREA), … - 2012
In a dynamic general equilibrium model with endogenous markups and labor market frictions, we investigate the effects of increased product market competition. Unlike most macroeconomic models of search, we endogenize the labor supply along the extensive mar- gin. We find numerically that a model...