Article ID Journal Published Year Pages File Type
9549483 Economics Letters 2005 6 Pages PDF
Abstract
This paper analyzes the role of transactions costs in a macroeconomic model of monopolistic competition. If there is sufficient increasing returns to scale in transaction technology, the economy exhibits multiple equilibria even if the production technology is constant or decreasing returns to scale.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Monopolistic competition, transaction costs and multiple equilibria
Authors
, ,