CORDIS Project
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This project explores the impact of product market frictions on pricing and demand dynamics at the firm level. By integrating micro and macroeconomic perspectives, it aims to understand how these frictions influence consumer behavior and overall economic fluctuations.
The transmission of microeconomic and macroeconomic shocks to firms' price and demand in product markets is the cornerstone of a large volume of macroeconomic literature.
Product market frictions, by reducing the ability of demand to relocate across different suppliers, affect firms' incentives when setting prices, and therefore the pass-through of shocks to both demand and prices.
In this project we plan to study the implications of product market frictions for firm level price and demand dy…
Istituto Einaudi per l'Economia e la Finanza
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