Varvarigos, D. and Gil-Moltó, M.J. (2014) Endogenous Market Structure, Occupational Choice, and Growth Cycles. Macroeconomic Dynamics. ISSN 1365-1005
Abstract
We model an industry that supplies intermediate goods in a growing economy. Agents can choose whether to provide labor or to become firm owners and compete in the industry. The idea that entry is determined through occupational choice has major implications for the economy's dynamics. Particularly, the results show that economic dynamics are governed by endogenous volatility in the determination of both the number of industry entrants and in the growth rate of output. Consequently, we argue that occupational choice and the structural characteristics of the endogenous market structure can act as both the impulse source and the propagation mechanism of economic fluctuations.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | Copyright © Cambridge University Press 2014. Reproduced in accordance with the publisher's self-archiving policy. |
Keywords: | Overlapping generations; Endogenous cycles; Market entry; Industry Dynamics; JEL Classification; E32; L16 |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 10 Dec 2015 17:33 |
Last Modified: | 10 Dec 2015 17:36 |
Published Version: | http://dx.doi.org/10.1017/S1365100514000157 |
Status: | Published |
Publisher: | Cambridge University Press (CUP) |
Refereed: | Yes |
Identification Number: | 10.1017/S1365100514000157 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:92143 |