Monopolistic Competition in a Two-Sector Economy: The Relative Economies of Scale

V. M. Goncharenko () and Alexander Shapoval

Economics of Contemporary Russia, issue 4

Abstract: A model of a two-sector economy with monopolistic competition in the industrial sector and perfect competition in the standard sector is considered. The equilibrium of the model is found under the assumption that workers are mobile within their sectors, but cannot move from sector to sector. Consumers’ preferences are described by a general utility function. Then we investigate the relative scale effect: the response of macroeconomic variables such as demand, supply, prices and wages on changes in the employment structure between the sectors.

References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ecr-journal.ru/jour/article/viewFile/93/92 (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:ack:journl:y::id:93

Access Statistics for this article

More articles in Economics of Contemporary Russia from Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences
Bibliographic data for series maintained by Ð ÐµÐ´Ð°ÐºÑ†Ð¸Ñ ().