Etro Endogenous Market Structures and the Macroeconomy

1. Auflage 2009
ISBN: 978-3-540-87427-0
Verlag: Springer-Verlag
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 346 Seiten

This is a key year for the evolution of international markets. The global economy is experiencing the most severe downturn since the thirties, it is temporarily leaving a path of sustained growth that characterized the last decades, and is facing an impressive decline of trade between countries. Banks are going bankrupt, the stock market has crashed, rms are going out of bu- ness or drastically reducing their production and exports, workers are being red and investment in new business creation or innovation is shrinking. Meanwhile, consumers con dence has dropped at its minimum, aggregate demand has been declining for months and expansionary policies and int- national coordination have failed to counteract the crisis until now. It is quite likely that all this will change sooner or later, but at the end of this crisis our understanding of the macroeconomy may change as well. In front of these crucial events, this book is not an attempt at proposing a radically new way of interpreting macroeconomic phenomena, and, as a m- ter of fact, it is not even a book on macroeconomic theory. My more modest goal is to collect a number of insights derived from recent research on the role of competition and innovation in the analysis of three topics: business cycles, trade and growth through innovations.

Autoren/Hrsg.

Etro, Federico

Inhaltsverzeichnis

1;Preface;6
2;Contents;15
3;1. Neoclassical Macroeconomics;19
3.1;1.1 The Microfoundation of Macroeconomics;20
3.2;1.2 Growth;34
3.3;1.3 International Finance and Trade;44
3.4;1.4 Business Cycles;55
3.5;1.5 Conclusions;68
4;2. The EMSs Approach to Macroeconomics;69
4.1;2.1 EMSs in Partial Equilibrium;73
4.2;2.2 Microfounded EMSs;78
4.3;2.3 EMSs with Isoelastic Sub-utility;83
4.4;2.4 EMSs in a Two Period Economy;93
4.5;2.5 EMSs in General Equilibrium;96
4.6;2.6 EMSs in an In.nite Periods General Equilibrium Economy;99
4.7;2.7 Business Cycle;106
4.8;2.8 Trade;108
4.9;2.9 Growth;109
4.10;2.10 Conclusions;111
5;3. Endogenous Market Structures and Business Cycles;113
5.1;3.1 Empirical Evidence on EMSs over the Business Cycle;116
5.2;3.2 A Model of the Business Cycle with EMSs;123
5.3;3.3 Steady State EMSs;132
5.4;3.4 Impulse Response Functions and Second Moments;138
5.5;3.5 EMSs and Accumulation of Physical Capital;148
5.6;3.6 Fiscal Policy;151
5.7;3.7 Monetary Policy;155
5.8;3.8 Labor and Credit Market Imperfections;159
5.9;3.9 Conclusions;162
6;4. Endogenous Market Structures and International Trade and Finance;163
6.1;4.1 Empirical Evidence on EMSs and Market Size E¤ects;167
6.2;4.2 A Model of Trade with EMSs;174
6.3;4.3 The Ghironi-Melitz Model;181
6.4;4.4 Trade Policy and Import Tari¤s;187
6.5;4.5 Strategic Export Promotion;190
6.6;4.6 Trade Policy and Export Subsidies;195
6.7;4.7 Protectionism, Lobbying and Trade Wars;201
6.8;4.8 Exchange Rate Policy;205
6.9;4.9 R&D Policy and IPRs Protection;211
6.10;4.10 Conclusions;213
7;5. Endogenous Market Structures and Growth;214
7.1;5.1 Empirical Evidence on EMSs and Innovation by Leaders;217
7.2;5.2 A Model of Endogenous Growth;229
7.3;5.3 A Model of Schumpeterian Growth;236
7.4;5.4 EMSs with Growth Leaders;243
7.5;5.5 Fiscal Policy;248
7.6;5.6 Monetary Policy;253
7.7;5.7 Growth and International Trade and Finance;257
7.8;5.8 Conclusions;263
8;6. Economic Principles and Policy for the New Economy;264
8.1;6.1 Short-run EMSs and the Competition Effect;265
8.2;6.2 Steady-state EMSs and Entry;275
8.3;6.3 Gains from Trade and the E¤ects of Globalization;284
8.4;6.4 Growth Driven by Leaders;288
8.5;6.5 Dynamic Ine¢ ciency;294
8.6;6.6 Fiscal Policy;296
8.7;6.7 Monetary Policy;302
8.8;6.8 Trade Policy;307
8.9;6.9 Exchange Rate Policy;311
8.10;6.10 Innovation and Competition Policy;316
8.11;6.11 Conclusions;325
9;7. Epilogue;326
10;8. References;330
11;Index;356