Add to ORKGAbstract We propose a model characterized by strategic interactions among an endogenous number of producers and search and matching frictions in the labor market. In line with U.S. data: (i) new firms account for a relatively small share of overall employment, but they create a relevant fraction of new jobs; (ii) firms' entry is procyclical; (iii) price mark ups are countercyclical, while aggregate profits are procyclical. In response to a technology shock the labor share decreases on impact and overshoots its long run level. Also the propagation on labor market variables is stronger than in the standard search model. We argue that the countercyclicality of the price mark up is the key mechanism for our results. JEL classification: E24...
In a dynamic general equilibrium model with endogenous markups and labor market frictions, we invest...
In a dynamic general equilibrium model with endogenous markups and labor market frictions, we invest...
The labor share fluctuates over the business cycle. To explain this behavior, we develop a novel mod...
Abstract We propose a flexible prices model where endogenous market structures and search and matchi...
We propose a flexible prices model where endogenous market structures and search and matching fricti...
We propose a flexible prices model where endogenous market structures and search and matching fricti...
We propose a flexible prices model where endogenous market structures and search and matching fricti...
Recent U.S. evidence suggests that the response of labor share to a productivity shock is characteri...
Recent U.S. evidence suggests that the response of labor share to a productivity shock is characteri...
Recent U.S. evidence suggests that the response of the labor share to a productivity shock is charac...
Recent U.S. evidence suggests that the response of the labor share to a productivity shock is charac...
Recent U.S. evidence suggests that the response of labor share to a productivity shock is character...
Recent U.S. evidence suggests that the response of labor share to a productivity shock is character...
We characterize endogenous market structures under Bertrand and Cournot competition in a DSGE model....
We characterise endogenous market structures under Bertrand and Cournot competition in a DSGE model....
In a dynamic general equilibrium model with endogenous markups and labor market frictions, we invest...
In a dynamic general equilibrium model with endogenous markups and labor market frictions, we invest...
The labor share fluctuates over the business cycle. To explain this behavior, we develop a novel mod...
Abstract We propose a flexible prices model where endogenous market structures and search and matchi...
We propose a flexible prices model where endogenous market structures and search and matching fricti...
We propose a flexible prices model where endogenous market structures and search and matching fricti...
We propose a flexible prices model where endogenous market structures and search and matching fricti...
Recent U.S. evidence suggests that the response of labor share to a productivity shock is characteri...
Recent U.S. evidence suggests that the response of labor share to a productivity shock is characteri...
Recent U.S. evidence suggests that the response of the labor share to a productivity shock is charac...
Recent U.S. evidence suggests that the response of the labor share to a productivity shock is charac...
Recent U.S. evidence suggests that the response of labor share to a productivity shock is character...
Recent U.S. evidence suggests that the response of labor share to a productivity shock is character...
We characterize endogenous market structures under Bertrand and Cournot competition in a DSGE model....
We characterise endogenous market structures under Bertrand and Cournot competition in a DSGE model....
In a dynamic general equilibrium model with endogenous markups and labor market frictions, we invest...
In a dynamic general equilibrium model with endogenous markups and labor market frictions, we invest...
The labor share fluctuates over the business cycle. To explain this behavior, we develop a novel mod...