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Endogenous Business Cycles and Business Formation in an Oligopolistic OLG Model with Strategic R&D Investment

Author

Listed:
  • D'Aspremont, C.
  • Dos Santos Ferreira, R.
  • Varet-Gerard, L.A.

Abstract

We study an endogenous business cycle model with Cournotian monopolistic competition and an endogenous number of firms in each sector. Our model is a simple general equilibrium macroeconomic model introducing overlapping generation both of consumers and firms. Firms strategically decide on investment in the first period of their life, and compete a la Cournot in the second period.

Suggested Citation

  • D'Aspremont, C. & Dos Santos Ferreira, R. & Varet-Gerard, L.A., 1999. "Endogenous Business Cycles and Business Formation in an Oligopolistic OLG Model with Strategic R&D Investment," G.R.E.Q.A.M. 99a33, Universite Aix-Marseille III.
    • Handle: RePEc:fth:aixmeq:99a33
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    Cited by:

    1. Maria José Gil-Moltó & Dimitrios Varvarigos, 2012. "Industry Dynamics and Indeterminacy in an OLG Economy with Endogenous Occupational Choice," Discussion Papers in Economics 12/09, Division of Economics, School of Business, University of Leicester, revised Sep 2012.

    More about this item

    Keywords

    BUSINESS CYCLES ; MONOPOLIES ; INVESTMENTS;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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