Modeling Complementarity in Monopolistic Competition

Kiminori Matsuyama

No 1028, Discussion Papers from Northwestern University, Center for Mathematical Studies in Economics and Management Science

Abstract: In recent years, monopolistic competition models have frequently been applied in macroeconomics, international and interregional economics, and economic growth and development. In this paper, I presenta highly selective review in this area, with special emphasis on the complementarity and its role of generating multiplier processes, agglomeration, underdevelopment traps, regional disparities, and sustainable growth, or more generally, what Myrdal (1957) called the "principle of circular and cumulative causation."

Date: 1993-02
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Journal Article: Modelling Complementarity in Monopolistic Competition (1993)
Working Paper: Modelling complementarity in monopolistic competition (1993)
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