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expansion, the short run competitive price is a pure strategy Nash equilibrium but in a recession, firms set prices above the … competitive price. Thus, price markups over the competitive price are countercyclical. Prices set during a recession are more …
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the "competition effect", by which desired price markups and inflation decrease when entry rises. We find that a 1 percent …
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Using a Bayesian framework this paper provides a multivariate combination approach to prediction based on a distributional state space representation of predictive densities from alternative models. In the proposed approach the model set can be incomplete. Several multivariate time-varying...
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