In markets where spatial competition is important, theory predicts increases in producer density (the number of producers per unit area in the local market) should lead to lower average prices. When producers are heterogeneous, this link exists for two reasons. First, the greater product...

Beginning with the seminal work by Kydland and Prescott, standard business cycle theory has credited technology shocks with being a major source of business cycle fluctuations. Unfortunately, these shocks, by their nature, are hard to identify and measure. This paper utilizes new measures of...