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Endogenous Market Structures and Business Cycles

In: Endogenous Market Structures and the Macroeconomy

Author

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  • Federico Etro

    (Università Milano-Bicocca)

Abstract

In this chapter, largely based on Etro and Colciago (2007), we open the black box. of the market structure and link the endogenous behavior of .rms at the sectorial level with the general equilibrium properties of the economy, and in particular with its business cycle properties. We consider distinct sectors, each one characterized by many firms supplying homogenous goods (as in the basic neoclassical framework) or differentiated goods (as in the New-Keynesian literature), taking strategic interactions into account and competing either in prices (Bertrand competition) or in quantities (Cournot competition).

Suggested Citation

  • Federico Etro, 2009. "Endogenous Market Structures and Business Cycles," Springer Books, in: Endogenous Market Structures and the Macroeconomy, chapter 3, pages 95-144, Springer.
  • Handle: RePEc:spr:sprchp:978-3-540-87427-0_3
    DOI: 10.1007/978-3-540-87427-0_3
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    More about this item

    Keywords

    Gross Domestic Product; Monetary Policy; Labor Supply; Business Cycle; Real Wage;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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