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dc.contributor.authorKoeniger, Winfrieden_US
dc.contributor.authorLicandro, Omaren_US
dc.date.accessioned2009-01-28T16:12:40Z-
dc.date.available2009-01-28T16:12:40Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/20242-
dc.description.abstractThe effects of competition on growth are analyzed in the recent literature by comparing economies with the same market structure but different degrees of substitutability. In this note, we show that in a general equilibrium model with monopolistic competition – la Dixit- Stiglitz the effect of substitutability on the allocation of resources is independent of the associated change in competition. Higher substitutability increases welfare, output and productivity because resources shift towards the most productive sectors. However, since markups are equal across sectors, changes in market power do not affect the relative price of consumption goods, implying that the induced changes in market power do not have any direct effect on equilibrium allocations.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesIZA Discussion paper series 1007en_US
dc.subject.jelL16en_US
dc.subject.ddc330en_US
dc.subject.keywordmonopolistic competitionen_US
dc.subject.keywordsubstitutionen_US
dc.subject.keywordmarket poweren_US
dc.subject.keywordoutputen_US
dc.subject.stwMonopolistischer Wettbewerben_US
dc.subject.stwProduktsubstitutionen_US
dc.subject.stwMarktmachten_US
dc.subject.stwAllgemeines Gleichgewichten_US
dc.subject.stwWirtschaftswachstumen_US
dc.subject.stwTheorieen_US
dc.titleSubstitutability and Competition in the Dixit-Stiglitz Modelen_US
dc.typeWorking Paperen_US
dc.identifier.ppn378733184en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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