Showing 1 - 10 of 50
This paper analyzes the effect of firing costs on aggregate productivity growth. For thispurpose, a model of endogenous growth through selection and imitation is developed. It isconsistent with recent evidence on firm dynamics and on the importance of reallocation forproductivity growth...
Persistent link: https://www.econbiz.de/10005861413
Product market regulation and employment protection are highly correlated across OECD countries. Using an augmented model of monopolistic competition we show why in countries with more regulated product markets, incumbent workers prefer to protect jobs relatively more. Product market regulation...
Persistent link: https://www.econbiz.de/10010261597
Collective dismissal costs are an important part of employment protection legislation (EPL) and make firms' exit more costly. We show in a model with step-by-step innovations that dismissal costs spur innovation if product markets are not too competitive: technologically more advanced firms...
Persistent link: https://www.econbiz.de/10010261602
Recently, the interactions between product market structure and labor market outcomes have come under increased scrutiny. This paper considers the dynamic relationship between product market entry regulation and equilibrium unemployment and wages, both theoretically and quantitatively. The main...
Persistent link: https://www.econbiz.de/10010261653
The effects of competition on growth are analyzed in the recent literature by comparing economies with the same market structure but different degrees of substitutability. In this note, we show that in a general equilibrium model with monopolistic competition – la Dixit- Stiglitz the effect of...
Persistent link: https://www.econbiz.de/10010261777
This paper develops a model with multiple market locations in which the quality of intangible assets of firms, provided by management, determines the firms? performance. Despite an exante symmetry of potential entrants, the equilibrium assignment of heterogeneous managerial skills to firms tends...
Persistent link: https://www.econbiz.de/10010261934
We present a model in which two of the most important features of the long-run growth process are reconciled: the massive changes in the structure of production and employment; and the Kaldor facts of economic growth. We assume that households expand their consumption along a hierarchy of needs...
Persistent link: https://www.econbiz.de/10010262779
We consider the dynamic relationship between product market entry regulation and equilibrium unemployment. The main theoretical contribution is combining a job matching model with monopolistic competition in the goods market and individual wage bargaining. Product market competition affects...
Persistent link: https://www.econbiz.de/10010267312
We contribute to the growing literature which aims to link product market regulation and competition to labor market outcomes, in an attempt to explain the divergent US and continental European labor market performance over the past two decades. The main contributions of this paper are...
Persistent link: https://www.econbiz.de/10010268091
We analyze the welfare cost of inflation in a model with cash-in-advance constraints and an endogenous distribution of establishments' productivities. Inflation distorts aggregate productivity through firm entry dynamics. The model is calibrated to the United States economy and the long-run...
Persistent link: https://www.econbiz.de/10010269435