Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212191
Authors: 
Colciago, Andrea
Rossi, Lorenza
Year of Publication: 
2011
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 12/2011
Abstract: 
We propose a flexible prices model where endogenous market structures and search and matching frictions in the labour market interact endogenously. The interplay between firms endogenous entry, strategic interactions among producers and labour market frictions represents a strong amplification channel for technology shocks on labour market variables and helps in addressing the unemployment- volatility puzzle. Consistently with US evidence, new firms create a large fraction of new jobs and grow faster than more mature firms, net entry of firms is procyclical and the price mark-up is countercyclical.
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-762-7
Document Type: 
Working Paper

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