Competition and the Phillips curve

• 成果类型: Article
• 署名作者: Fujiwara, Ippei; Matsuyama, Kiminori
• 署名单位: Keio University; ; Northwestern University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2026.103920
• 发表日期: 2026
• 关键词: product variety; prices; inflation; performance; exporters; POWER; rise

摘要

We propose a mechanism through which the rising market concentration causes the flattening of the Phillips curve. By extending the New Keynesian model using Homothetic Single Aggregator (HSA) demand systems, we show that a higher entry cost reduces the number of firms, which raises the markup rate and lowers the pass-through rate, thereby structurally flattening the Phillips curve. Additionally, an endogenous entry creates cost-push shocks through strategic complementarity, biasing empirical estimates. These two reasons, one structural and one observational, together can go a long way toward understanding the flattening of the Phillips curve.