Dynamic general equilibrium models with imperfectly competitive product markets

by Julio Rotemberg

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Published 1993 by Alfred P. Sloan School of Management, Massachusetts Institute of Technology in Cambridge, Mass .
Written in

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Edition Notes

Statement	Julio J. Rotemberg, Michael Woodford.
Series	Working paper / Alfred P. Sloan School of Management -- WP # 3623-93-EFA, Working paper (Sloan School of Management) -- 3623.
Contributions	Woodford, Michael.
The Physical Object
Pagination	52 p. :
Number of Pages	52
ID Numbers
Open Library	OL17937846M
OCLC/WorldCa	29229868

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In Walras original description of general equilibrium (Walras, []), market clearing was effected by a central authority. This authority, which has come to be known as the auctioneer, remains today because no one has succeeded in producing a plausible decentralised dynamic model of producers and consumers engaged in mar-. This book offers an introductory step-by-step course in Dynamic Stochastic General Equilibrium (DSGE) modelling. Modern macroeconomic analysis is increasingly concerned with the construction, calibration and/or estimation and simulation of DSGE models. The book is intended for graduate students as an introductory course to DSGE modelling and for those economists who would like a .

  Finally, the authors address the theory of cost-benefit analysis, in terms of environmental and other public policies, in dynamic general equilibrium models. This book is an impressive investigation of the theory of social accounting, with particular emphasis on valuation problems facing imperfectly competitive : Thomas Aronsson, Karl Gustaf Lofgren, Kenneth Backlund. wage and let it go at that. Dynamic general equilibrium models that can be constructed with the new methods have been used to address both traditional macroeconomic questions and a wide array of new problems. Every aspect of aggregative modeling has been affected by this revolution: investment theory, models of labor supply and labor market.   The model is a dynamic stochastic general equilibrium model based on monopolistic competition in product markets, and we analyze it assuming both full adjustment of wages and prices and staggered pricing.

The competitive equilibrium The competitive equilibrium for this economy consists of 1. A pricing system for W and R 2. A set of values assigned to Y, C, I, L and K. such that 1. given prices, the consumer optimization problem is satisfied; 2. given prices, the firm maximizes its profits; and 3. all markets clear at those prices. DYNAMIC GENERAL EQUILIBRIUM MODELS WITH IMPERFECTLY COMPETITIVE PRODUCT MARKETS ABSTRACT This paper discusses the consequences of introducing imperfectly competitive product markets into an otherwise standard neoclassical growth model. We pay particular attention to the consequences of imperfect competition for the explanation of fluctuations in aggregate. This is the world of imperfect competition, one that lies between the idealized extremes of perfect competition and monopoly. It is a world in which firms battle over market shares, in which economic profits may persist, in which rivals try to outguess each other with pricing, advertising, and product-development strategies.