New in paperback. Hardcover was published in 2003. Includes previously unpublished working papers by Dixit and Stiglitz that led to their famous 1977 paper.
In 1977 a seminal paper was published by Avinash Dixit and Joseph Stiglitz that revolutionized the modeling of imperfectly competitive markets. It launched what might be called the second monopolistic competition revolution, which has been far more successful than the first one, initiated by Edward Chamberlin and Joan Robinson in the 1930s. In this 2003 collection of essays experts in the fields of macroeconomics, international trade theory, economic geography, and international growth theory address the question of why the second revolution was so successful. They also highlight what is missing, and look forward to the next step in the modeling of imperfectly competitive markets. The text includes a comprehensive survey of both monopolistic competition revolutions, and previously unpublished working papers by Dixit and Stiglitz that led to their famous 1977 paper. With contributions from Dixit, Ethier, Neary and Stiglitz amongst others, this collection will excite interest amongst researchers, advanced students and economists.
Table of Contents
1. Introduction Steven Brakman and Ben J.
Part I. Underground Classics: 2. Monopolistic
competition and the capital market Joseph E.
3. Monopolistic competition and optimum product
diversity (May 1974) Avinash K. Dixit and
Joseph E. Stiglitz
4. Monopolistic competition and optimum product
diversity (February 1975) Avinash K. Dixit and
Joseph E. Stiglitz
Part II. Current Perspectives: 5. Some
reflections on theories and applications of
monopolistic competition Avinash K. Dixit
6. Reflections on the state of the theory of
monopolistic competition Joseph E. Stiglitz
7. Dixit-Stiglitz, trade, and growth Wilfred J.
Part III. International Trade: 8. Monopolistic
competition and international trade theory J.
9. Monopolistically competitive provision of
inputs: A geometric approach to the general
equilibrium Joseph Francois and Douglas Nelson
Part IV. Economic Geography: 10. The
core-periphery model: Key features and effects
R. Baldwin, R. Forslid, P. Martin and F.
11. Globalisation, wages and unemployment: A
new economic geography perspective Jolanda
Peeters and Harry Garretsen
12. Empirical research in geographical
economics Steven Brakman, Harry Garretsen,
Charles van Marrewijk and Marc Schramm
13. The monopolistic competition model in urban
economic geography J. Vernon Henderson
Part V. Economic Growth: 14. Monopolistic
competition and economic growth Sjak Smulders
and Theo van de Klundert
15. Convergence and the welfare gains of
capital mobility in a dynamic Dixit-Stiglitz
world Sjak Smulders
16. A vintage model of technology diffusion:
The effects of returns to diversity and
learning-by-using Henri L. F. de Groot, Marjan
W. Hofkes and Peter Mulder
Part VI. Macroeconomics: 17. Monopolistic
competition and macroeconomics: Theory and
quantitative implication Russell W. Cooper
18. Does competition make firms enterprising or
defensive? Jan Boone
19. Rationalization and specialization in
start-up investment Christian Keuschnigg
20. Industrial policy in a small open economy
Leon J. H. Bettendorf and Ben J. Heijdra.