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We study planned price changes in German firm-level survey data to infer the relative importance of supply and demand … during the Covid-19 pandemic. Supply and demand forces coexist, but demand deficiencies dominate in the short run. Quarter … role for demand stimulus policy to buffer the Covid-19 economic crisis. …
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Firms’ market power, measured by markups, has risen substantially and unequally across sectors. To evaluate the implications of these trends for monetary non-neutrality, we develop a quantitative menu cost model that covers multiple sectors with heterogeneous degrees of market competition. Two...
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Theory predicts that the wage effects of government-mandated severance payments depend on workers' and firms' relative … quasi-experimental setting, exploiting a reform that introduced unjust-dismissal costs in Italy for firms below 15 employees … and left firing costs unchanged for bigger firms. Accounting for the endogeneity of the treatment status, we find that …
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