98107 hdl_2072_13171 oai:www.recercat.cat:2072/179091 How do monopolistically competitive industries react to shocks in the context of a New Keynesian macro model? I bridge macroeconomics and trade theory by considering market dynamics. I use an analytically tractable closed-economy model with endogenous entry of firms and show the implications of markets structure for the transmission of real shocks on aggregate variables and welfare. Shock sources become crucial for the results: traditional productivity shocks cause an extensive effect on production; shocks on innovation cause an intensive impact. More patient populations bring the economy to a richer market, although it cushions the extensive effect after an innovation shock. eng Arespa, Marta Xarxa de Referència en Economia Aplicada (XREAP) Xarxa de Referència en Economia Aplicada (XREAP) 2011 Macroeconomics of extensive margins : a simple model 38 p. L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: http://creativecommons.org/licenses/by/3.0/es/ info:eu-repo/semantics/openAccess 33 338 Macroeconomics Macroeconomia info:eu-repo/semantics/workingPaper XREAP ; 2011-19 ESTUDIS UAB 38 267275 http://ddd.uab.cat/pub/estudis/2011/hdl_2072_179091/XREAP2011-19.pdf Adreça alternativa http://hdl.handle.net/2072/179091 driver oai:ddd.uab.cat:98107