Product Market Competition, Firm Behaviour and Unemployment PDF Download

Author: Matthias Wernicke
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 166

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Author: G. J. Macartney
Publisher:
ISBN:
Category :
Languages : en
Pages :

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This thesis investigates the effect that market institutions have on economic outcomes such as employment and innovation. The market institutions under study are those that determine the conditions in product, labour and capital markets. Of particular interest is how the effect of institutional changes in one market depends on the conditions in another, or depends on the nature of innovation by the firm. The first chapter describes the matching of patents at the European Patent Office to firm accounts data for all registered firms across fifteen European countries. This constitutes a valuable new dataset for research in innovation that is used for much of the empirical work in this thesis. The second chapter investigates the impact of product market competition on unemployment, and how this depends on labour market institutions. It uses differential changes in regulations across OECD countries to find that increased competition reduces unemployment, more so in countries with strong unions. The third chapter investigates how the effect of product market competition on innovation depends on financial institutions. Using exogenous variation in competition in manufacturing industries this chapter finds that the positive effect of competition on innovation is larger in countries with good financial institutions. The fourth chapter investigates the effect of employment protection legislation on innovation. The theoretical effect of employment protection legislation on innovation is ambiguous, and empirical evidence is thus far inconclusive. This chapter finds that within multinational enterprises overall innovation occurs more in subsidiaries located in countries with high employment protection, however radical innovation occurs more in subsidiaries located in countries with low employment protection.

Author:
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Category :
Languages : en
Pages :

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Author: Sónia Félix
Publisher: International Monetary Fund
ISBN: 1513521519
Category : Business & Economics
Languages : en
Pages : 57

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This paper studies the macroeconomic effect and underlying firm-level transmission channels of a reduction in business entry costs. We provide novel evidence on the response of firms' entry, exit, and employment decisions. To do so, we use as a natural experiment a reform in Portugal that reduced entry time and costs. Using the staggered implementation of the policy across the Portuguese municipalities, we find that the reform increased local entry and employment by, respectively, 25% and 4.8% per year in its first four years of implementation. Moreover, around 60% of the increase in employment came from incumbent firms expanding their size, with most of the rise occurring among the most productive firms. Standard models of firm dynamics, which assume a constant elasticity of substitution, are inconsistent with the expansionary and heterogeneous response across incumbent firms. We show that in a model with heterogeneous firms and variable markups the most productive firms face a lower demand elasticity and expand their employment in response to increased entry.

Author: Claude d’Aspremont
Publisher: Springer Nature
ISBN: 303063602X
Category : Business & Economics
Languages : en
Pages : 160

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This book provides a methodology for the analysis of oligopolistic markets from an equilibrium viewpoint, considering competition within and between groups of firms. It proposes a well-founded measure of competitive toughness that can be used in empirically relevant applications. This measure reflects the weight put by each firm on competition for market share relative to competition for market size – two dimensions of competition involving conflicting and convergent interests, respectively. It further explores several applications, such as the effect of tougher competition on innovation and of output market power on the emergence of involuntary unemployment, as well as the importance of strategic interactions for investment decisions. Relative to the dominant model of monopolistic competition, The Economics of Competition, Collusion and In-between aims to explore an alternative tractable model of firm competition opening the application of oligopoly theory to many fields in economics where general equilibrium features are crucial. It will be relevant to those interested in applied industrial organization, trade, macroeconomics (in particular macrodynamics) and quantitative economics.

Author: Erkki Koskela
Publisher:
ISBN:
Category :
Languages : en
Pages : 33

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We investigate the implications of product market imperfections on profit sharing, wage negotiation and equilibrium unemployment. The optimal profit share, which the firms use as a wage-moderating commitment device, is below the bargaining power of the trade union. Intensified product market competition decreases profit sharing, but increases the negotiated base wage, because the wage-increasing effect of reduced profit sharing dominates the wage-reducing effect associated with a higher wage elasticity of labor demand. Finally, we show that intensified product market competition does not necessarily reduce equilibrium unemployment, because it induces both higher wage mark-ups and lower optimal profit shares.

Author: Kai-Uwe Kühn
Publisher:
ISBN:
Category : Competition, Imperfect
Languages : en
Pages : 44

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Author: Bo Zhao
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 332

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Author: Zhiqi Chen
Publisher:
ISBN:
Category : Competition, Imperfect
Languages : en
Pages : 30

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Author: Winfried Koeniger
Publisher:
ISBN:
Category :
Languages : en
Pages : 32

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