Dynamic General Equilibrium Models With Imperfectly Competitive Product Markets Classic Reprint

About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work.

Dynamic General Equilibrium Models With Imperfectly Competitive Product Markets  Classic Reprint

Excerpt from Dynamic General Equilibrium Models With Imperfectly Competitive Product Markets This paper discusses the consequences of introducing imperfectly competitive product into an otherwise standard neoclassical growth model. We pay particular attention to the consequences of imperfect competition for the explanation of fluctuations in aggregate economic activity. Market structures considered include monopolistic competition, the "customer market" model of Phelps and Winter, and the implicit collusion model of Rotemberg and Saloner. Empirical evidence relevant to the numerical calibration on imperfectly competitive models is reviewed. The paper then analyzes the effects of imperfect competition upon the economy's response to several kinds of real shocks, including technology shocks, shocks to the level of government purchases, and shocks that change individual producers' degree of market power. It also discusses the role of imperfect competition in allowing for fluctuations due solely to self-fulfilling expectations. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Dynamic General Equilibrium Models With Imperfectly Competitive Product Markets

About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work.

Dynamic General Equilibrium Models With Imperfectly Competitive Product Markets

Excerpt from Dynamic General Equilibrium Models With Imperfectly Competitive Product Markets This paper discusses the consequences of introducing imperfectly competitive product into an otherwise standard neoclassical growth model. We pay particular attention to the consequences of imperfect competition for the explanation of fluctuations in aggregate economic activity. Market structures considered include monopolistic competition, the "customer market" model of Phelps and Winter, and the implicit collusion model of Rotemberg and Saloner. Empirical evidence relevant to the numerical calibration on imperfectly competitive models is reviewed. The paper then analyzes the effects of imperfect competition upon the economy's response to several kinds of real shocks, including technology shocks, shocks to the level of government purchases, and shocks that change individual producers' degree of market power. It also discusses the role of imperfect competition in allowing for fluctuations due solely to self-fulfilling expectations. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

The Macroeconomics of Imperfect Competition and Nonclearing Markets

A single unified framework that integrates dynamic macroeconomics models on general equilibrium theory, imperfect competition, nonclearing markets, and rational expectations.

The Macroeconomics of Imperfect Competition and Nonclearing Markets

A single unified framework that integrates dynamic macroeconomics models on general equilibrium theory, imperfect competition, nonclearing markets, and rational expectations.

Geld und Wirtschaftspolitik in gesellschaftlicher Verantwortung

Goodfriend , M./King , R. ( 1997 ) : The New Neoclassical Synthesis and the Role of Monetary Policy , in : B. ... ( 1995 ) : Dynamic general equilibrium models with imperfectly competitive product markets , in : T. Cooley , ed .

Geld  und Wirtschaftspolitik in gesellschaftlicher Verantwortung


The Monopolistic Competition Revolution in Retrospect

Market structure and cyclical fluctuations in US manufacturing. ... Vintage capital and inequality. Review of Economic Dynamics, ... Dynamic general equilibrium models with imperfectly competitive product markets, in Cooley, Th. F. (ed.) ...

The Monopolistic Competition Revolution in Retrospect

In 1977 a seminal paper was published by Avinash Dixit and Joseph Stiglitz that revolutionized the modeling of imperfectly competitive markets. It launched what might be called the second monopolistic competition revolution, which has been far more successful than the first one, initiated by Edward Chamberlin and Joan Robinson in the 1930s. In this 2003 collection of essays experts in the fields of macroeconomics, international trade theory, economic geography, and international growth theory address the question of why the second revolution was so successful. They also highlight what is missing, and look forward to the next step in the modeling of imperfectly competitive markets. The text includes a comprehensive survey of both monopolistic competition revolutions, and previously unpublished working papers by Dixit and Stiglitz that led to their famous 1977 paper. With contributions from Dixit, Ethier, Neary and Stiglitz amongst others, this collection will excite interest amongst researchers, advanced students and economists.

Macroeconomic Theory

... “Dynamic general equilibrium models with imperfectly competitive product markets,” in T. F. Cooley (ed.) ... Sala-i-Martin, Xavier X. (1996), “The classical approach to convergence analysis,” Economic Journal, vol. 106, 1019–1036.

Macroeconomic Theory

This graduate textbook is a "primer" in macroeconomics. It starts with essential undergraduate macroeconomics and develops in a simple and rigorous manner the central topics of modern macroeconomic theory including rational expectations, growth, business cycles, money, unemployment, government policy, and the macroeconomics of nonclearing markets. The emphasis throughout the book is on both foundations and presenting the simplest model for each topic that will deliver the relevant answers. The first two chapters recall the main workhorses of undergraduate macroeconomics: the Solow-Swan growth model, the Keynesian IS-LM model, and the Phillips curve. The next chapters present four fundamental "building blocks" of modern macroeconomics: rational expectations, intertemporal dynamic models, nonclearing markets and imperfect competition, and uncertainty. Later the book deals with growth, notably the Ramsey model, overlapping generations, and endogenous growth. Chapter 10 moves to the famous "real business cycles" (RBC), which integrate in a unified framework growth and fluctuations. The final chapters look at the issue of stabilization, how best to guard the economy from shocks, and the connections between politics and the macroeconomy. To make the book self contained, a mathematical appendix gives a number of simple technical results that are sufficient to follow the formal developments of the book.

Interest and Prices

Pigou, Arthur C., “The Classical Stationary State,” Economic Journal 53: 343–351, 1943. ... 1992. , “Dynamic General Equilibrium Models with Imperfectly Competitive Product Markets,” in T. F. Cooley, ed., Frontiers of Business Cycle ...

Interest and Prices

With the collapse of the Bretton Woods system, any pretense of a connection of the world's currencies to any real commodity has been abandoned. Yet since the 1980s, most central banks have abandoned money-growth targets as practical guidelines for monetary policy as well. How then can pure "fiat" currencies be managed so as to create confidence in the stability of national units of account? Interest and Prices seeks to provide theoretical foundations for a rule-based approach to monetary policy suitable for a world of instant communications and ever more efficient financial markets. In such a world, effective monetary policy requires that central banks construct a conscious and articulate account of what they are doing. Michael Woodford reexamines the foundations of monetary economics, and shows how interest-rate policy can be used to achieve an inflation target in the absence of either commodity backing or control of a monetary aggregate. The book further shows how the tools of modern macroeconomic theory can be used to design an optimal inflation-targeting regime--one that balances stabilization goals with the pursuit of price stability in a way that is grounded in an explicit welfare analysis, and that takes account of the "New Classical" critique of traditional policy evaluation exercises. It thus argues that rule-based policymaking need not mean adherence to a rigid framework unrelated to stabilization objectives for the sake of credibility, while at the same time showing the advantages of rule-based over purely discretionary policymaking.

Transforming Modern Macroeconomics

... models of perfect competition: The dynamic stochastic general equilibrium (DSGE) models now used to analyze the short-run effects of alternative policies often involve imperfect competition in both labor markets and product markets, ...

Transforming Modern Macroeconomics

"This book tells the story of the search for non-Walrasian micro-foundations for macroeconomic theory, from the disequilibrium theories of Patinkin, Clower, and Leijonhufvud to recent dynamic stochaotic general equilibrium models with imperfect competition. Placing this search against the background of wider developments in macroeconomics, the authors contend that this was never a single research program, but involved economists with very different aims who developed the basic ideas about quantity constraints, spillover effects, and coordination failures in different ways. The authors contrast this with the equilibrium approach of Phelps and Lucas, arguing that equilibrium theories simply assumed away the problems that had motivated the disequilibrium literature. Although equilibrium Walrasian models came to dominate macroeconomics, non-Walrasian theories never went away and continue to exert an important influence on the subject. Although this book focuses on one strand in modern macroeconomics, it is crucial to understanding the origins of modern macroeconomic theory"--

Macroeconomic Theory and Stabilization Policy

The ( slow ) development of general equilibrium models with imperfect competition in labour and product markets bodes well for the future . The application of the insights of the asymmetric information paradigm to labour , product and ...

Macroeconomic Theory and Stabilization Policy


Surfing Economics

'Dynamic general models with imperfectly competitive product markets', Annales d'économie et de statistique, 37–38, 357–410. ... 'Equilibrium in supergames with the overtaking criterion', Journal of Economic Theory, 21, 1–9.

Surfing Economics


Imperfect Competition and Sticky Prices

deviates from a standard general equilibrium model only by the assumption of imperfect competition in the goods market . ... play an important role in standard Keynesian analysis also suggests extending this model to a dynamic setting .

Imperfect Competition and Sticky Prices

These two volumes bring together a set of important essays that represent a "newKeynesian" perspective in economics today. This recent work shows how the Keynesian approach toeconomic fluctuations can be supported by rigorous microeconomic models of economic behavior. Theessays are grouped in seven parts that cover costly price adjustment, staggering of wages andprices, imperfect competition, coordination failures, and the markets for labor, credit, and goods.An overall introduction, brief introductions to each of the parts, and a bibliography of additionalpapers in the field round out this valuable collection.Volume 1 focuses on how friction in pricesetting at the microeconomic level leads to nominal rigidity at the macroeconomic level, and on themacroeconomic consequences of imperfect competition, including aggregate demand externalities andmultipliers. Volume 2 addresses recent research on non-Walrasian features of the labor, credit, andgoods markets.N. Gregory Mankiw is Professor of Economics at Harvard University. David Romer isAssociate Professor of Economics at the University of California at Berkeley.Contributors: George AAkerlof. Costas Azariadis. Laurence Ball. Ben S. Bernanke. Mark Bits. Olivier J. Blanchard. Alan S.Blinder. John Bryant. Andrew S. Caplin. Dennis W. Carlton. Stephen G. Cecchetti. Russell Cooper.Peter A. Diamond. Gary Fethke. Stanley Fischer. Robert E. Hall. Oliver Hart. Andrew John. NobuhiroKiyotaki. Alan B. Krueger. David M. Lilien. Ian M. McDonald. N. David Mankiw. Arthur M. Okun. AndresPolicano. David Romer. Julio J. Rotemberg. Garth Saloner. Carl Shapiro. Andrei Shleifer. Robert M.Solow. Daniel F. Spulber. Joseph E. Stiglitz. Lawrence H. Summers. John Taylor. Andrew Weiss.Michael Woodford. Janet L. Yellen.

The Macroeconomics of Imperfect Competition and Nonclearing Markets

A Dynamic General Equilibrium Approach Jean-Pascal Benassy. mechanism at work in this regime is a type of " supply multiplier " ( BarroGrossman 1974 ) by which a reduction in the quantity of goods available for consumption reduces the ...

The Macroeconomics of Imperfect Competition and Nonclearing Markets

In this book, Jean-Pascal Benassy attempts to integrate into a single unified framework dynamic macroeconomic models reflecting such diverse lines of thought as general equilibrium theory, imperfect competition, Keynesian theory, and rational expectations. He begins with a simple microeconomic synthesis of imperfect competition and nonclearing markets in general equilibrium under rational expectations. He then applies this framework to a large number of dynamic macroeconomic models, covering such topics as persistent unemployment, endogenous growth, and optimal fiscal-monetary policies. The macroeconomic methodology he uses is similar in spirit to that of the popular real business cycles theory, but the scope is much wider. All of the models are solved "by hand," making the underlying economic mechanisms particularly clear.

21st Century Economics A Reference Handbook

... (b) a methodological preference for using dynamic stochastic general equilibrium models; (c) the widespread use of the REH; (d) recognition of the importance of imperfect competition in goods, labor, and credit markets; ...

21st Century Economics  A Reference Handbook

Interest in economics is at an all-time high. Among the challenges facing the nation is an economy with rapidly rising unemployment, failures of major businesses and industries, and continued dependence on oil with its wildly fluctuating price. Americans are debating the proper role of the government in company bailouts, the effectiveness of tax cuts versus increased government spending to stimulate the economy, and potential effects of deflation. Economists have dealt with such questions for generations, but they have taken on new meaning and significance. Tackling these questions and encompassing analysis of traditional economic theory and topics as well as those that economists have only more recently addressed, 21st Century Economics: A Reference Handbook is intended to meet the needs of several types of readers. Undergraduate students preparing for exams will find summaries of theory and models in key areas of micro and macroeconomics. Readers interested in learning about economic analysis of an issue as well students embarking on research projects will find introductions to relevant theory and empirical evidence. And economists seeking to learn about extensions of analysis into new areas or about new approaches will benefit from chapters that introduce cutting-edge topics. To make the book accessible to undergraduate students, models have been presented only in graphical format (minimal calculus) and empirical evidence has been summarized in ways that do not require much background in statistics or econometrics. It is thereby hoped that chapters will provide both crucial information and inspiration in a non-threatening, highly readable format.

Macrofinancial Risk Analysis

Drawing upon Lane's discussion, the DGE models at the beginning of the 21st century can be characterized as follows. Imperfect competition, whether in product or factor markets, is a key ingredient. Some degree of monopoly power implies ...

Macrofinancial Risk Analysis

Macrofinancial risk analysis Dale Gray and Samuel Malone Macrofinancial Risk Analysis provides a new and powerful framework with which policymakers and investors can analyze risk and vulnerability in economies, both emerging market and industrial. Using modern risk management and financial engineering techniques applied to the macroeconomy, an economic value can be placed on the risks posed by inter-linkages between sectors, the risk of default of different sectors on their outstanding debt obligations quantified, and the value ex-ante of guarantees to private sector entities by the government calculated. This book guides the reader through the basic macroeconomic and financial models necessary to understand the framework, the core analytical tools, and more advanced contributions that will be of interest to researchers. This unique synthesis of ideas from finance and macroeconomics offers several original contributions to the theory of financial crises, as well as a range of new policy options for governments interested in achieving a better tradeoff between economic growth and macro risk.

The Structure of Applied General Equilibrium Models

On a system of inequalities in demand analysis : An extension of the classical method . ... Reprinted in Collected Papers . ... General equilibrium concepts under imperfect competition : A Cournotian approach .

The Structure of Applied General Equilibrium Models

Bridges the gap between applied and theoretical general equilibrium models.

Economics for Investment Decision Makers

Monopolistic competition Highly competitive form of imperfect competition; the competitive characteristic is a notably large ... Neo-Keynesians A group of dynamic general equilibrium models that assume slow-to-adjust prices and wages.

Economics for Investment Decision Makers

The economics background investors need to interpret global economic news distilled to the essential elements: A tool of choice for investment decision-makers. Written by a distinguished academics and practitioners selected and guided by CFA Institute, the world’s largest association of finance professionals, Economics for Investment Decision Makers is unique in presenting microeconomics and macroeconomics with relevance to investors and investment analysts constantly in mind. The selection of fundamental topics is comprehensive, while coverage of topics such as international trade, foreign exchange markets, and currency exchange rate forecasting reflects global perspectives of pressing investor importance. Concise, plain-English introduction useful to investors and investment analysts Relevant to security analysis, industry analysis, country analysis, portfolio management, and capital market strategy Understand economic news and what it means All concepts defined and simply explained, no prior background in economics assumed Abundant examples and illustrations Global markets perspective

Historical Perspectives on Macroeconomics

Gabszewicz and Vial's (1972) Cournot—Walras model is an example of a Walrasian imperfect competition general equilibrium model. 5 Given that supply measures are understood as covering all alternatives to demand activation, ...

Historical Perspectives on Macroeconomics

Since the publication of Keynes's General Theory of Employment, Interest and Money in 1936, macroeconomic theory has altered considerably. Each author in this volume focuses on an issue which either preceded, accompanied or followed the 'Keynesian Revolution' and helped to shape economics in subsequent years. Contributors reconsider some of the major concepts of the "General Theory": unemployment and the identity of income and output. They also highlight some of the controversies in macroeconomic theory and review the macroeconomic policy implications and consequences.

The Macrodynamics of Advanced Market Economics

On the von Neumann model, see John von Neumann, “A Model of General Equilibrium,” Review of Economic Studies, 1945–46, no. 1; Bent Hansen, A Survey of General Equilibrium Systems, New York: McGraw-Hill, 1970, ch. 16; Blatt, Dynamic ...

The Macrodynamics of Advanced Market Economics

This volume examines the macrodynamic behaviour of advanced economies with social institutions similar to those of the United States and other members of the Organization of Economic Cooperation and Development. It is a critique of, and provides alternative models to, conventional neoclassical theory. The principles developed are used to explain two major phenomena in economic life: the nation's secular growth rate and the cyclical deviations around that growth. These interdependent movements of trend and cycle constitute the economy's macrodynamic behaviour. Eichner uses a systems framework for integrating four distinct institutional dimensions in society - the normative, the political, the economic, and the anthropogenic. This book, by one of the leading proponents of Post-Keynesian economics, is the culmination of over 13 years of scholarly work. The author's untimely death in February 1988 prevented the final revisions of his manuscript. The book should prove an essential addition to the library of scholars and students of economics both within and outside the Post-Keynesian tradition.

The New Macroeconomics

3 Notes on imperfect competition and New Keynesian economics Richard Startz Introduction New Keynesian economics is a counter ... so an initial shock in the supply or demand for goods will be magnified in general equilibrium .

The New Macroeconomics

Brings together leading researchers from the USA and Europe to examine the literature on the new macroeconomics.

Disequilibrium Growth and Labor Market Dynamics

The dynamic ' general equilibrium ' MSG2 model of the world economy by McKibbin and Sachs grew out of earlier work by the authors , the MSG1 model , which was based on a model of two country interaction of Mundell - Fleming type ...

Disequilibrium  Growth and Labor Market Dynamics

This volume is a review which presents both a basic science and clinical perspective on neuroprotective approaches to acute and chronic neurodegenerative conditions. Experts from both fields review current areas of neuroprotection. The book describes basic science discovery in stroke research and the application of such research within the pharmaceutical industry leading to the development of neuroprotective drugs.