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Dr. Konstantin Kucheryavyy
Assistant Professor
University of Tokyo

We study international propagation of monetary and productivity shocks in a business cycle model with sticky prices and endogenous entry. Theoretically, we provide an aggregate isomorphism of a model with sticky prices and endogenous entry with a competitive model that has time-varying factor shares and production externalities. This allows us to precisely point out how various model features affect the transmission of shocks. Quantitatively, we assess whether such a model can account for various aspects of international co-movement and dynamics of open economy variables.