Endogenous Entry, Product Variety, and Business Cycles

• 成果类型: Article
• 署名作者: Bilbiie, Florin O.; Ghironi, Fabio; Melitz, Marc J.
• 署名单位: Paris School of Economics; heSam Universite; Universite Pantheon-Sorbonne; Center for Economic & Policy Research (CEPR); Boston College; Federal Reserve System - USA; Federal Reserve Bank - Boston; National Bureau of Economic Research; Center for Economic & Policy Research (CEPR); Harvard University
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/665825
• 发表日期: 2012
• 页码: 304-345
• 关键词: monopolistic competition; increasing returns; firm dynamics; EXIT; TECHNOLOGY; specialization; GROWTH; TRADE; time

摘要

This paper builds a framework for the analysis of macroeconomic fluctuations that incorporates the endogenous determination of the number of producers and products over the business cycle. Economic expansions induce higher entry rates by prospective entrants subject to sunk investment costs. The sluggish response of the number of producers generates a new and potentially important endogenous propagation mechanism for business cycle models. The return to investment determines household saving decisions, producer entry, and the allocation of labor across sectors. Our framework replicates several features of business cycles and predicts procyclical profits even for preference specifications that imply countercyclical markups.