This paper studies the effect of competitive pressures on inflation dynamics. To this end it derives and estimates a … their market power. By taking into account the number of competitors, the pass-through of real marginal cost on inflation is … of real marginal cost on inflation is stronger than that found in the empirical test of the standard model. The estimated …

Competition can have opposite impacts on the inflation-output trade-off by increasing the real rigidity but lowering … impulsive responses from the SVAR estimation: the initial inflation-output trade-off is larger in the region with a high degree …