University of Tasmania
Browse
2021-01_Pavlov_Weder.pdf (308.91 kB)

Endogenous product scope: Market interlacing and aggregate business cycle dynamics

Download (308.91 kB)
report
posted on 2023-05-28, 00:05 authored by Oscar PavlovOscar Pavlov, Weder, M
This paper examines a market interlacing industry configuration in general equilibrium with multi-product firms. In contrast to previous studies which utilize market segmentation, firms produce multiple products even in the complete absence of the love of variety. Product scopes are procyclical and entry and exit of firms generates an endogenous amplification mechanism. When simulated by shocks derived from the efficiency and labor wedges, the model replicates the changes in dynamics between the pre- and post 1983 periods, and explains the hours-productivity puzzle.

History

Department/School

School of Engineering

Publisher

University of Tasmania

Publication status

  • Published

Place of publication

Hobart

Rights statement

Copyright 2020 University of Tasmania Discussion Paper Series N 2021-01 JEL Classification: E32

Repository Status

  • Open

Usage metrics

    University Of Tasmania

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC