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 …

This paper describes optimal monetary policy in an economy with monopolistic competition, endogenous firm entry, a cash …-in-advance constraint and pre-set wages. Firms must make profits in order to cover entry costs; thus a mark-up on goods prices is necessary … requirement at market entry stage, insufficient labour supply also implies too little entry and too few firms in equilibrium. In …

) product variant is underprovided. A model, integrating entry into a perfectly competitive, vertically differentiated industry …

This paper studies optimal taxation in a general equilibrium macro model with endogenous entry. We compare the constant … the misalignment of markups on goods and leisure, and an entry distortion due to the misalignment of the consumer surplus … effect and the profit destruction effect of entry. The two distortions interact in determining the wedge between the market …