The effect of a common currency on the volatility of the extensive margin of trade

Competitive tax reforms in a monetary union with endogenous entry and tradability

“…As in Auray et al (2012), we consider a model of endogenously produced and traded varieties along the lines of Ghironi & Melitz (2005), and incorporate sticky prices in the retail sector as well as fiscal instruments. However, as in Cacciatore & Ghironi (2014), we consider an intermediate sector producing goods that serve as inputs in the production of final goods, and that are used to pay entry and export costs.…”

“…1 The model derives from Auray, Eyquem & Poutineau (2012) and Cacciatore & Ghironi (2014). As usual, endogenous tradability is introduced by an entry condition on export profits, and endogenous entry derives directly from expected profitability conditions.…”

Firms' entry, monetary policy and the international business cycle

“…In a closed economy with labor entry costs, Uusküla (2010) shows that sticky price models predict a positive relation between …rms'entry and interest rate innovations in contrast to what found in the data. 6 The reason is that an increase in the interest rate, by restraining labor demand, reduces real wages and entry costs. A similar mechanism extends to open economies as long as entry costs are entirely non-tradable (as labor costs).…”

“…and …rm entry. The contributions closer to this paper are Auray, Eyquem and Poutineau (2012) and Auray and Eyquem (2011). The former focuses on a transmission mechanism that may be considered complementary to the one analyzed here.…”

Monetary shocks, exchange rates, and the extensive margin of exports

“…In this paper, the extent of exchange rate pass-through to consumer prices is given, and I assess movements in the extensive margin of exports over the business cycle. Naknoi (2008), Cavallari (2010, and Auray et al (2012).…”