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Optimal Stabilization with Endogenous Firm Entry

Author

Listed:
  • Christopher Waller

    (University of Notre Dame and FRB-St. Louis)

Abstract

a¤ecting firm entry, the central bank deviates from the Friedman rule. Calibration ex-ercises suggest that the nominal interest rate should have been substantially smoother than the data if preference shocks were the main disturbance and much more volatile if productivity was the driving shock. This result is a direct consequence of policy actions to control entry.

Suggested Citation

  • Christopher Waller, 2009. "Optimal Stabilization with Endogenous Firm Entry," 2009 Meeting Papers 621, Society for Economic Dynamics.
    • Handle: RePEc:red:sed009:621
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    References listed on IDEAS

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    Cited by:

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    3. Alejandro SALAZAR-ADAMS & Nicolás PINEDA-PABLOS, 2010. "Policies for Meeting Future Water Needs in Mexican Cities," EcoMod2010 259600147, EcoMod.
    4. Bergin, Paul R. & Lin, Ching-Yi, 2012. "The dynamic effects of a currency union on trade," Journal of International Economics, Elsevier, vol. 87(2), pages 191-204.
    5. Savagar, Anthony, 2021. "Measured productivity with endogenous markups and economic profits," Journal of Economic Dynamics and Control, Elsevier, vol. 133(C).
    6. Feng, Ling & Li, Zhiyuan & Swenson, Deborah L., 2017. "Trade policy uncertainty and exports: Evidence from China's WTO accession," Journal of International Economics, Elsevier, vol. 106(C), pages 20-36.
    7. Stephen D. Williamson & Randall Wright, 2010. "New monetarist economics: methods," Review, Federal Reserve Bank of St. Louis, vol. 92(May), pages 265-302.

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