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Immerisizing Growth in a Monopolistic Competition Model
Author(s) -
Sen Partha
Publication year - 1997
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/1467-9396.00049
Subject(s) - monopolistic competition , economics , welfare , competition (biology) , per capita , marginal cost , growth model , endogenous growth theory , microeconomics , market economy , monopoly , ecology , population , demography , sociology , biology , human capital
In models of trade with monpolistic competition, firms set prices above marginal cost. An example is provided in this paper in which, because of this, a growth in the labor force lowers welfare per capita.