Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/191814 
Year of Publication: 
2019
Series/Report no.: 
Volkswirtschaftliche Diskussionsbeiträge No. 2019,1
Publisher: 
Universität der Bundeswehr München, Fachgruppe für Volkswirtschaftslehre, Neubiberg
Abstract (Translated): 
In this paper, we intend so "re-construct" the famous Barone-curve, which goes back to Enrico Barone's contributions to economics in the 1930s. After discussing the comparative statics and the distribution of profits features of the model, we have explicitly introduced, for the first time, the demand side of the economy into the model. This is important when it comes to assess the relevance of major demand factors' elasticities. Thereafter, we have set up a dynamic version of the Barone curve model. Based on a heterogeneous second order differential equation, the stability and convergence properties of prices are identified under the conditions of an existing Barone curve. Finally, we have analyzed possible empirical investigations on the relevance of the Barone curve and evaluated policy implications.
Subjects: 
Innovation
imitation
Barone curve
Static and dynamic macro modeling
JEL: 
B31
B22
E32
O31
O11
O47
Document Type: 
Working Paper

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