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Endogenous product scope: market interlacing and aggregate business cycle dynamics
Citation
Pavlov, O and Weder, M, Endogenous product scope: market interlacing and aggregate business cycle dynamics, European Economic Review, 148 Article 104243. ISSN 0014-2921 (2022) [Refereed Article]
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Copyright Statement
Copyright 2022 The Author(s) Licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) https://creativecommons.org/licenses/by-nc-nd/4.0/
DOI: doi:10.1016/j.euroecorev.2022.104243
Abstract
This paper examines a market interlacing industry configuration in general equilibrium with multi-product firms. In contrast to previous studies which utilize market segmentation, firms produce multiple products even in the complete absence of the love of variety. Product scopes are procyclical and entry and exit of firms generates an endogenous amplification mechanism. When simulated by shocks derived from the efficiency and labor wedges, the model replicates the changes in dynamics between the pre- and post 1983 periods, and explains the hours-productivity puzzle.
Item Details
| Item Type: | Refereed Article |
|---|---|
| Keywords: | multi-product firms, business cycles |
| Research Division: | Economics |
| Research Group: | Applied economics |
| Research Field: | Macroeconomics (incl. monetary and fiscal theory) |
| Objective Division: | Economic Framework |
| Objective Group: | Macroeconomics |
| Objective Field: | Macroeconomics not elsewhere classified |
| UTAS Author: | Pavlov, O (Dr Oscar Pavlov) |
| ID Code: | 151725 |
| Year Published: | 2022 |
| Deposited By: | Economics |
| Deposited On: | 2022-08-03 |
| Last Modified: | 2022-09-02 |
| Downloads: | 8 View Download Statistics |
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