Optimal monetary policy with endogenous entry and product variety
Paris School of Economics, University of Paris 1 Panthéon-Sorbonne, and CEPR; Australian National University, CAMA, and EABCN; University of Washington, CEPR, EABCN, and NBER
New Keynesian DSGE model with endogenous firm entry, product variety, and Rotemberg quadratic price adjustment costs. Features homothetic preferences for variety (CES-DS, general CES, exponential, and translog specifications), monopolistic comp
monopolistic competition with endogenous entry, sunk entry costs, Rotemberg quadratic price adjustment costs, exogenous firm destruction probability
Figure B.1 p.19 and Section 4.1 p.10
Ramsey-optimal long-run inflation under C.E.S. preferences with epsilon=0 and price indexation (gamma between 0.25 and 0.5)