E22

Capital; Investment; Capacity

A note on firm entry, markups and the business cycle

JEL codes: 
E22
Version Date: 
Jul 2013
Author/s: 
Abstract: 

This paper proposes a monetary model with firm entry as a means for alleviating the difficulties of real business cycle models in reproducing the smoothness and persistence of macroeconomic variables together with the volatility of profits and markups.

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Moonlighting production, tax rates and capital subsidies

JEL codes: 
E22, E26, H25, H26
Version Date: 
Mar 2011
Abstract: 

Informal firms play a crucial role in both developing and developed countries, and there is
evidence of a larger presence of moonlighting firms over ghost firms. The former are firms
that operate simultaneously in the official and unofficial sectors, whereas the ghost firms
undertake their production only underground. In order to deal with this evidence, through an

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