Author: Vincy FonPublisher:
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 81
Book Description
Three Essays on General Equilibrium and Imperfect Competition
Author: Vincy FonPublisher:
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 81
Book Description
Monopolistic Competition and General Equilibrium Theory
Author: Robert TriffinPublisher:
ISBN:
Category : Competencia
Languages : en
Pages : 216
Book Description
Essays on Imperfect Information and Imperfect Competition
Author: Hassan Afrouzi KhosroshahiPublisher:
ISBN:
Category :
Languages : en
Pages : 394
Book Description
This dissertation investigates three questions about pricing and information acquisition incentives of imperfectly competitive firms, and studies the macroeconomic implications of those incentives within general equilibrium models. Chapter 1 studies why in countries where inflation has been low and stable, price setters display highly dispersed aggregate inflation expectations; especially so when they face fewer competitors. In contrast to the predictions of standard models, realized inflation deviates significantly from price setters’ aggregate inflation expectations. Instead, their own-industry inflation expectations are more accurate, and aggregate inflation tracks these expectations closely. I propose a new dynamic model of rational inattention with oligopolistic competition to explain these stylized facts. The Phillips curve relates aggregate inflation to price setters’ own-industry inflation expectation, and firms forego learning about aggregate variables to focus on their own-industry prices. This incentive is stronger when every firm faces fewer competitors. Using new firm-level survey evidence, I calibrate the degree of rational inattention and industry size in the model and find that a two-fold increase in the number of competitors reduces the half-life and on-impact response of output to a monetary policy shock by 40 and 15 percent, respectively. Chapter 2 is about the behavior of the price-cost markups. The cyclicality of markups is crucial to understanding the propagation of shocks and the comovement of macroeconomic variables. I show that the degree of inertia in the response of output to shocks is a fundamental determining factor for the cyclicality of markups in a broad class of models. In particular, markups follow a forward looking law of motion in which they depend on firms’ conditional expectations over the net present value of all future changes in output. I test this law of motion with data for firms’ expectations and find that, across different types of microfounded models of cyclical markups, the behavior of firms is most consistent with implicit collusion models. Calibrating an implicit collusion model to the U.S. data, I find that markups are procyclical when the model matches the observed inertial response of output to shocks, as commonly found in the data. Chapter 3 studies the pricing behavior of rationally inattentive firms when they face persistent productivity shocks along with transitory demand shocks. I show that prices respond persistently to transitory demand shocks, as firms optimally choose to be confused about the two types of the shocks. When a positive transitory demand shock is realized, it takes time for firms to disentangle it from a supply shock, during which they act as if there was a negative aggregate productivity shock. Therefore, an expansion caused by a positive demand shock is followed by a recession until firms fully recognize the origin of the change in their optimal price. I also develop a tractable method for solving linear quadratic rational inattention models in continuous time and derive semi-analytical results for impulse response functions of endogenous variables under rational inattention.
Three Essays on Imperfect Competition[
Author: Adina Oana ClaiciPublisher:
ISBN: 9788468965215
Category :
Languages : en
Pages : 250
Book Description
General Equilibrium Analysis of Imperfect Competition
Author: ʻAmmā SayāmwālāThree Essays in Economic Theory
Author: Uday RajanTowards a More General Theory of Value
Author: Edward ChamberlinPublisher: New York : Oxford University Press
ISBN:
Category : Competition
Languages : en
Pages : 344
Book Description
Applying General Equilibrium
Author: John B. ShovenPublisher: Cambridge University Press
ISBN: 9780521319867
Category : Business & Economics
Languages : en
Pages : 316
Book Description
The central idea underlying this work is to convert the Walrasian general equilibrium structure (formalized in the 1950s by Kenneth Arrow, Gerard Debreu and others) from an abstract representation of an economy into realistic models of actual economies.
Essays in Dynamic General Equilibrium Theory
Author: Alessandro CitannaPublisher: Springer Science & Business Media
ISBN: 3540271929
Category : Business & Economics
Languages : en
Pages : 278
Book Description
In the area of dynamic economics, David Cass’s work has spawned a number of important lines of research, including the study of dynamic general equilibrium theory, the concept of sunspot equilibria, and general equilibrium theory when markets are incomplete. Based on these contributions, this volume contains new developments in the field, written by Cass's students and co-authors.
Three Essays on the Empirical Study of Productivity Residuals and Imperfect Competition
Author: David Michael WrightPublisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 316
Book Description