This paper estimates a business cycle model with endogenous firm entry by matching impulse responses to a monetary … entry may influence the monetary transmission process. Through the competition effect, the arrival of new entrants makes the … firm and product entry raises consumption utility and thereby lowers the cost of living. This implies higher markups and …

formation. Models with an extensive investment margin, i.e. endogenous firm and product entry, have difficulties explaining … these two phenomena simultaneously. Considering different variants of an endogenous-entry business cycle model, we show that … crowding-in of both consumption and entry can be generated only under very specific assumptions. In a static model with full …

This paper estimates a business cycle model with endogenous firm entry by matching impulse responses to a monetary … entry may influence the monetary transmission process. Through the competition effect, the arrival of new entrants makes the … firm and product entry raises consumption utility and thereby lowers the cost of living. This implies higher markups and …