IMMISERIZING GROWTH IN A MODEL OF TRADE WITH MONOPOLISITIC COMPETITION

Partha Sen
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Partha Sen: Delhi School of Economics

No 21, Working papers from Centre for Development Economics, Delhi School of Economics

Abstract: In models of trade with monopolistic competition an externality is present because of mark-up pricing. An example is provided in this paper where because of this a growth in stock of a factor of production lowers welfare.

Pages: 16 pages
Date: 1994-08
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