Multiple equilibria in a growthmodel with monopolistic competition
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Multiple equilibria in a growthmodel with monopolistic competition

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Published by Centre for Economic Policy Research in London .
Written in English

Subjects:

  • Economic growth -- Mathematical models.,
  • Competition, Imperfect -- Mathematical models.

Book details:

Edition Notes

StatementJordi Galí.
SeriesDiscussion paper series / Centre for Economic Policy Research -- no.751
ContributionsCentre for Economic Policy Research.
The Physical Object
Pagination23p. ;
Number of Pages23
ID Numbers
Open LibraryOL19881065M

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Title: Multiple equilibria in a growth model with monopolistic competition. Created Date: 6/6/ AM. In contrast, when the demand elasticity is positively related to the savings rate, multiple stationary equilibria (as well as multiple non-stationary equilibrium paths converging to them) emerge for some parameter values. The standard neoclassical growth model is modified by introducing a market structure characterized by monopolistic competition and variable demand elasticities. In equilibrium, the price elasticity of the demand schedule facing a typical firm is a function of the aggregate savings rate. The latter feature results from an assumed wedge between the elasticity of substitution across goods in. Multiple Equilibria in a Growth Model with Monopolistic Competition. In contrast, when the demand elasticity is positively related to the savings rate, multiple stationary equilibria (as well as multiple non-stationary equilibrium paths converging to them) emerge for some parameter values. Author: Jordi Galí.

  This paper shows that a monopolistically competitive economy with real investment can have multiple rational expectations equilibria: one is associat We use cookies to enhance your experience on our continuing to use our website, you are agreeing to our use of by: 10)A characteristic of monopolistic competition is that each firm A)faces perfectly elastic demand. B)faces a downward-sloping demand curve. C)has a perfectly inelastic supply. D)has a perfectly elastic supply. 10) 11)In monopolistic competition, each firm has a demand curve with A)a slope equal to zero, and there are barriers to entry into the File Size: KB. Multiple Choice** 1. In a monopolistic-ally competitive market there are: A) Many firms producing an identical product. B) Many firms producing similar but not identical products. In a model with multiple equilibria, initial conditions determine which, if any, of several equilibria will be realized, and small differences in initial conditions can lead to large differences in long-run behavior.

The Chamberlin´s model analyses and explains the short and long run equilibriums that occur under monopolistic competition, a market structure consisting of multiple producers acting as monopolists even though the market as a whole resembles a perfectly competitive one. The economist Edward H. Chamberlin gives name to this model, which he developed in his book “Theory of Monopolistic. The Price-Output Equilibrium under Monopolistic Competition! A firm under monopolistic competition has to face various problems which are absent under perfect competition. Since the market of an individual firm under perfect competition is completely merged with the general one, it can sell any amount of the good at the ruling market price. Market Structure Multiple Choice Questions and Answers for competitive exams. These short objective type questions with answers are very important for Board exams as well as competitive exams. These short solved questions or quizzes are provided by Gkseries. from book Time and Space in Economics Multiple Equilibria in a Growth Model with Monopolistic Competition We develop a simple growth model with imperfect competition in which demand.