Endogenous Market Structures and the Macroeconomy

ISBN-13: 9783540874263 / Angielski / Twarda / 2009 / 346 str.

Federico Etro

Opis

The book introduces a new approach to macroeconomics based on endogenous market structures (EMSs), with a close focus on business cycles, international trade and policy and growth. Chapter 1 reviews the standard neoclassical approach to macroeconomics. Chapter 2 extends it to EMSs with strategic interactions and endogenous entry of firms. Chapter 3 introduces EMSs in a model of the business cycle, shows that they allow us to outperform RBC models in explaining the cyclical variability of US data, and studies fiscal and monetary policy. Chapter 4 introduces EMSs in international trade, applies them to a dynamic framework and derives implications for trade policy, R&D policy and exchange rate policy. Chapter 5 introduces EMSs in the competition for the market and in the theory of Schumpeterian growth and provides an empirical test of the EMSs approach. Chapter 6 concludes with a non-technical discussion of the main results and employs them to discuss a number of recently debated issues.

Spis treści

Neoclassical Macroeconomics.- The EMSs Approach to Macroeconomics.- Endogenous Market Structures and Business Cycles.- Endogenous Market Structures and International Trade and Finance.- Endogenous Market Structures and Growth.- Economic Principles and Policy for the New Economy.

Blurb

Endogenous Market Structures and the Macroeconomy introduces strategic interactions and endogenous entry to study business cycles, trade and growth. Going beyond the neoclassical approach, the EMSs approach provides new insights on macroeconomic policy, trade policy and R&D policy. The book discusses related empirical evidence and applications to issues of business creation, innovation and leadership in the New Economy, and it analyzes macroeconomic mechanisms and policymaking in the current crisis.

Prof. Federico Etro teaches macroeconomics at the University of Milan, Bicocca and industrial organization at the University of Edinburgh for the Scottish Graduate Programme in Economics. He studied at the U.C.L.A. and Harvard, and wrote articles for American Economic Review, International Economic Review, Economic Journal, Journal of Macroeconomics, Public Choice and the book "Competition, Innovation, and Antitrust" (2007, Springer).

Etro reviews the EMSs approach to macroeconomics and derives several new results. The potential of this approach to change the way we think about the macroeconomy emerges clearly from the impressive range of topics to which it is successfully applied. In each case, the approach challenges the traditional view and policy implications. Etro's discussion of the EMSs approach in the context of a coherent and comprehensive analytical framework provides an invaluable service to the profession.

Pietro Peretto, Duke University

For many decades, the field of industrial organization lived in the world of microeconomics, separately from the macroeconomic world of economic growth and business cycles. In recent years we have seen a fruitful convergence of the two. This book is a very useful contribution to this literature.

Avinash Dixit, Princeton University

A must read for macroeconomists and international economists who value microfoundations and view micro-level dynamics as a key determinant of aggregate phenomena. It is equally valuable as a textbook for graduate teaching and reference for researchers.

Fabio Ghironi, Boston College