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Monopolistic Competition and Macroeconomic Theory

Monopolistic Competition and Macroeconomic Theory - 98 edition

ISBN13: 978-0521626163

Cover of Monopolistic Competition and Macroeconomic Theory 98 (ISBN 978-0521626163)
ISBN13: 978-0521626163
ISBN10: 0521626161
Cover type:
Edition/Copyright: 98
Publisher: Cambridge University Press
Published: 1998
International: No

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Monopolistic Competition and Macroeconomic Theory - 98 edition

ISBN13: 978-0521626163

Robert M. Solow

ISBN13: 978-0521626163
ISBN10: 0521626161
Cover type:
Edition/Copyright: 98
Publisher: Cambridge University Press

Published: 1998
International: No
Summary

Much of today's conventional macroeconomic theory presumes that markets for goods approach the state of perfect competition. Monopolistic Competition and Macroeconomic Theory assumes that markets are imperfect, so that sellers have some power over price, and must therefore form quantity expectations about the location of the firm's demand curve. The question is then about the macroeconomic implications of imperfect competition in goods markets. The first chapter is a brief survey of ideas recently proposed in economics including multiple equilibria. The second chapter describes a particular micro-based macro model that allows several families of equilibria. The third chapter shows how a standard locational model can be used to describe a sample macroeconomy when firms have close rivals. In this volume derived from his Federico Caffe Lecture, Nobel Laureate Robert Solow shows that there are simple and tractable micro-based models that offer the possibility of a richer and more intuitive macroeconomics.

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