This paper focuses on a single simple stylized fact which stands out from the post-war history of the US Car industry, namely that industry concentration fell just at the same time as industry advertising expenditures rose sharply. Since both events were almost certainly caused by the entry and...

In the framework of a Keynesian based monetary macromodel we study the implications of alternative monetary policy rules. Our monetary macromodel exhibits the following features: asset market clearing, disequilibrium in the product and labor markets, sluggish price and quantity adjustments, two...

With the recent events of the large-scale financial crisis in some parts of the world and the slowly declining inflation rate in major OECD countries debt deflation has again become an important topic in economic research. In a model with debt issuing firms, financing their investment, we...

Recent literature in Industrial Organization has shown that the threat of entry limits the price setting power of dominant firms and stimulates the incumbents to increase innovations ---both leading to welfare improvements. On the other hand dominant firms as incumbents strive to build up entry...

The attempt to match characteristics of asset pricing models such as the risk-free interest rate, equity premium and the Sharpe ratio for models with instantaneous consumption decisions in the context of stochastic growth models has not been very successful. Many recent versions of asset pricing...