Time to enter and business cycles

✍ Scribed by David Cook

• Book ID: 104293723
• Publisher: Elsevier Science
• Year: 2001
• Tongue: English
• Weight: 204 KB
• Volume: 25
• Category: Article
• ISSN: 0165-1889
• DOI: 10.1016/s0165-1889(99)00055-x

✦ Synopsis

This paper examines a model in which market entry forms a business cycle propagation mechanism. During expansionary periods, new "rms enter previously monopolized markets creating e$ciency gains that amplify the e!ect of technology and "scal policy shocks on employment. Market entry is delayed creating a dynamic pattern to output growth closer to that observed in the US economy than the standard RBC model.