Melitz, Marc; Ghironi, Fabio; Bilbiie, Florin - Institute for Quantitative Social Science, Harvard … - 2006
We study the e¢ ciency properties of a dynamic, stochastic, general equilibrium, macroeco- nomic model with monopolistic competition and …rm entry subject to sunk costs, a time-to-build lag, and exogenous risk of …rm destruction. Under inelastic labor supply and linearity of produc- tion in...