Entry costs and aggregate dynamics

• 成果类型: Article
• 署名作者: Gutierrez, German; Jones, Callum; Philippon, Thomas
• 署名单位: New York University; Federal Reserve System - USA; Federal Reserve System Board of Governors; Center for Economic & Policy Research (CEPR); National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2021.09.006
• 发表日期: 2021
• 页码: S77-S91
• 关键词: Corporate investment; COMPETITION; Tobin's Q; zero lower bound

摘要

We use a structural model to study the interaction between barriers-to-entry, investment, and monetary policy. We first show that entry cost shocks have distinct macroeconomic implications: they raise markups but reduce aggregate demand and investment in such a way that inflation barely changes. Entry costs can thus rationalize the coexistence of increasing markups and low inflation. We then estimate the model on U.S. data. We find that entry costs have risen in the U.S. over the past 20 years and have depressed capital and consumption by about 4%. Absent entry cost shocks, the real interest rate would have been between 0.5 to 1 percentage point higher over the lower bound period. (c) 2021 Elsevier B.V. All rights reserved.