A Simple Business-Cycle Model with Schumpeterian Features
AbstractWe develop a dynamic general equilibrium model of imperfect competition where a sunk cost of creating a new product regulates the type of entry that dominates in the economy: new products or more competition in existing industries. Considering the process of product innovation is irreversible, introduces hysteresis in the business cycle. Expansionary shocks may lead the economy to a new â€˜prosperity plateau,â€™ but contractionary shocks only affect the market power of mature industries
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Bibliographic InfoPaper provided by Money Macro and Finance Research Group in its series Money Macro and Finance (MMF) Research Group Conference 2006 with number 105.
Date of creation: 02 Feb 2007
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Entry; Hysteresis; Mark-up;
Other versions of this item:
- Luis F Costa & Huw D Dixon, . "A Simple Business-Cycle Model with Schumpeterian Features," Discussion Papers 05/30, Department of Economics, University of York.
- Luís Costa & Huw Dixon, 2005. "A Simple Business-cycle Model with Schumpeterian Features," Working Papers 2005/16, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon..
- Costa, Luís F. & Dixon, Huw, 2007. "A Simple Business-Cycle Model with Shumpeterian Features," Cardiff Economics Working Papers E2007/28, Cardiff University, Cardiff Business School, Economics Section.
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-09 (All new papers)
- NEP-COM-2007-04-09 (Industrial Competition)
- NEP-DGE-2007-04-09 (Dynamic General Equilibrium)
- NEP-MAC-2007-04-09 (Macroeconomics)
- NEP-MIC-2007-04-09 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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