Monopsony Power and Creative Destruction (joint with Isabella Maassen and Filip Mellgren)
American Economic Journal: Macroeconomics 2026
This paper explores the trade-off between static efficiency and growth in monopsonistic labor markets using a tractable endogenous growth model with heterogeneous firms.
Recommended citation: Maassen, I., Mellgren, F., Overhage, J. (2026). "Monopsony Power and Creative Destruction", R&R, American Economic Journal: Macroeconomics. http://JOverhage.github.io/files/MMO_Monopsony_Jan26.pdf