 Microeconomic Foundations and Properties of a Macroeconomic Model with Imperfect CompetitionChapter 8 in Issues in Contemporary Economics, 1991, pp 121-138 from Palgrave Macmillan Abstract: Abstract Recent years have witnessed a growing development of macroeconomic models with imperfect competition.1 A strong point of these models is that both price and quantity decisions are made rationally by maximising agents, which differentiates them from Keynesian models, where the price formation process is a priori given, and from Walrasian models, where the job of price-making is left to the implicit auctioneer. The purpose of this paper is to review a number of properties of such micro-macro models. We shall do so by actually building a general equilibrium based macroeconomic model, and see that its properties are different in a number of respects from both Keynesian or Walrasian models. In order for the results not to depend on arbitrary conjectures or expectations, we shall assume both rational expectations and objective demand curves. This will be done in the framework of a stationary overlapping generations model, which we shall describe now. Keywords: Monetary Policy; Rational Expectation; Imperfect Competition; Macroeconomic Model; Walrasian Equilibrium (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-11573-0_9 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-11573-0_9 Access Statistics for this chapter More chapters in International Economic Association Series from Palgrave Macmillan |
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