Monopolistic Competition and Macroeconomic Theory (Federico Caffè Lectures) - Hardcover

Solow, Robert M.

Hardcover

ISBN 10: 0521623383 ISBN 13: 9780521623384

Publisher: Cambridge University Press, 1998

Synopsis

Much of today's conventional macroeconomic theory presumes that markets for goods approach the state of perfect competition. Monopolistic Competition and Macroeconomic Theory assumes that markets are imperfect, so that sellers have some power over price, and must therefore form quantity expectations about the location of the firm's demand curve. The question is then about the macroeconomic implications of imperfect competition in goods markets. The first chapter is a brief survey of ideas proposed in economics including multiple equilibria. The second chapter describes a particular micro-based macro model that allows several families of equilibria. The third chapter shows how a standard locational model can be used to describe a sample macroeconomy when firms have close rivals. In this volume derived from his Federico Caffe Lecture, Nobel Laureate Robert Solow shows that there are simple and tractable micro-based models that offer the possibility of a richer and more intuitive macroeconomics.

About this title

Book Description

Nobel Laureate Robert Solow is widely regarded as one of the greatest living economists. In Monopolistic Competition and Macroeconomic Theory Solow gives a non-technical account of the implications of monopolistic competition on macroeconomic theory and shows that micro-based models can offer the possibility of a richer and more intuitive macroeconomics.

Edition details

• Publisher: Cambridge University Press
• Publication date: 1998
• Language: English
• ISBN 10: 0521623383
• ISBN 13: 9780521623384
• Binding: Hardcover
• Number of pages: 90