Multisector monopolistic competition model

Igor Pospelov () and Stanislav Radionov
Additional contact information
Igor Pospelov: Research University Higher School of Economics

HSE Working papers from National Research University Higher School of Economics

Abstract: We present a natural generalization of the Dixit-Stiglitz monopolistic competition model (DSM) | we assume that there is a continuum of industries, each of them described as in DSM, and each characterized with its own elasticity of substitution. Although rms in all industries share the same level of productivity and costs, exogenous technological progress leads to non-trivial reallocations of labor and production to industries with lower elasticities of substitution. Thus the model, despite is simplicity and absence of additional assumptions about industry structure, generates the structural changes described in the economic growth literature

Keywords: Dixit-Stiglitz model; monopolistic competition; economic growth; labor reallocations. (search for similar items in EconPapers)
JEL-codes: D43 J21 L13 O41 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2013
New Economics Papers: this item is included in nep-com and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in WP BRP Series: Economics / EC, September 2013, pages 1-18

Downloads: (external link)
http://www.hse.ru/data/2013/09/18/1275652605/34EC2013.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:34/ec/2013

Access Statistics for this paper

More papers in HSE Working papers from National Research University Higher School of Economics
Bibliographic data for series maintained by Shamil Abdulaev () and Shamil Abdulaev ().