In an economy where oligopolistic industries play a relevant role, the strategic interactions among large firms may have relevant macroeconomic implications. This work introduces a simplified macromodel where fluctuations and business cycle, instead of being generated by technology shocks, are generated by entry/exit and by the outcome of the interactions among oligopolistic firms. The theoretical framework consists of an economic system with heterogeneous agents, social mobaility and an oligopolistic industrial sector. The agents are heterogeneous with respect to their budget constraint, may have diverging incentives and may change their social status in each period according to stochastic processes interacting with entry/exit and with the labour market.
Industrial Structure and the Macroeconomy – Theoretical Premises for a Macromodel with Social Mobility, Oligopoly, Entry/Exit and Cycle
MAZZOLI, MARCO
2011-01-01
Abstract
In an economy where oligopolistic industries play a relevant role, the strategic interactions among large firms may have relevant macroeconomic implications. This work introduces a simplified macromodel where fluctuations and business cycle, instead of being generated by technology shocks, are generated by entry/exit and by the outcome of the interactions among oligopolistic firms. The theoretical framework consists of an economic system with heterogeneous agents, social mobaility and an oligopolistic industrial sector. The agents are heterogeneous with respect to their budget constraint, may have diverging incentives and may change their social status in each period according to stochastic processes interacting with entry/exit and with the labour market.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.