We analyze the business cycle implications of firms having oligopsony power in labor markets, as well as oligopoly power in product markets, within the context of an estimated New Keynesian dynamic stochastic general equilibrium model with firm entry and exit. The strategic interaction between...

We analyze the business cycle implications of firms having oligopsony power in labor markets, as well as oligopoly power in product markets, within the context of an estimated New Keynesian dynamic stochastic general equilibrium model with firm entry and exit. The strategic interaction between...

This paper demonstrates the countercyclicality of income inequality. Inferences are drawn from a unique model that combines a new Keynesian framework with an endogenous growth mechanism that features a labor-augmenting technology. The income disparity is between high-skill workers who service...

The market value of U.S. corporations was nearly halved during the oil crisis of 1973-74. In this paper, we investigate the hypothesis that the sharp rise in energy costs during this period resulted in the obsolescence of firms' existing capital and reduced their market value. To quantify this...