TY  - UNPD
A1  - Lewis, Vivien
A1  - Stevens, Arnoud
T1  - The competition effect in business cycles : [Version 21 März 2012]
T2  - Working paper series / Institute for Monetary and Financial Stability ; 51
N2  - How do changes in market structure affect the US business cycle? We estimate a monetary DSGE model with endogenous …rm/product entry and a translog expenditure function by Bayesian methods. The dynamics of net business formation allow us to identify the 'competition effect', by which desired price markups and inflation decrease when entry rises. We …find that a 1 percent increase in the number of competitors lowers desired markups by 0.18 percent. Most of the cyclical variability in inflation is driven by markup fluctuations due to sticky prices or exogenous shocks rather than endogenous changes in desired markups.
T3  - Working paper series / Institute for Monetary and Financial Stability - 51 
KW  - Bayesian estimation
KW  - business cycles
KW  - competition
KW  - entry
KW  - markups
Y1  - 2012
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/24083
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-240835
UR  - http://www.imfs-frankfurt.de/fileadmin/user_upload/WP_2012_51.pdf
IS  - Version 21 März 2012
PB  - Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability
CY  - Frankfurt am Main
ER  -