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Differential profit rates in long period analysis: The nonlinear case
Author(s) -
D'Agata Antonio
Publication year - 2017
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/meca.12162
Subject(s) - economics , non profit , profit (economics) , differential (mechanical device) , period (music) , nonlinear system , econometrics , rate of profit , mathematical economics , microeconomics , business , physics , business administration , quantum mechanics , acoustics , thermodynamics
In this note, we generalize the long‐period linear model with differential profit rates due to “idiosyncratic” factors considered by classical economists and developed in D'Agata and Mori. More specifically, we remove the assumption of linear evaluation functions and the assumption that in the economy there are as many producers as industries.