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Equilibrium Price Distribution with Directed Technical Change

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  • Pedro Mazeda Gil

    ()
    (CEF.UP and Faculdade de Economia, Universidade do Porto, Portugal)

  • Fernanda Figueiredo

    ()
    (CEAUL and Faculdade de Economia, Universidade do Porto, Portugal)

  • Oscar Afonso

    ()
    (CEF.UP, OBEGEF and Faculdade de Economia, Universidade do Porto, Portugal)

Abstract

This paper studies a non-degenerate price distribution for the homogeneous good within a model of endogenous directed technical change. A probability density function is analytically derived and shown to be related to the technology and innovation parameters of the model.

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File URL: http://www.fep.up.pt/investigacao/workingpapers/09.07.07_wp327.pdf
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Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 327.

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Length: 8 pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:por:fepwps:327

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Keywords: price distribution; directed technical change; scale effects; labour endowment;

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  1. Daron Acemoglu & Fabrizio Zilbotti, 1999. "Productivity Differences," NBER Working Papers 6879, National Bureau of Economic Research, Inc.
  2. Jones, Charles I, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(2), pages 495-525, May.
  3. Elias Dinopoulos & Peter Thompson, 1999. "Scale effects in Schumpeterian models of economic growth," Journal of Evolutionary Economics, Springer, Springer, vol. 9(2), pages 157-185.
  4. Kultti, Klaus & Virrankoski, Juha, 2004. "Price distribution in a random matching model," Economics Letters, Elsevier, Elsevier, vol. 83(3), pages 405-409, June.
  5. Kultti Klaus & Virrankoski Juha, 2003. "Price Distribution in a Symmetric Economy," The B.E. Journal of Macroeconomics, De Gruyter, De Gruyter, vol. 3(1), pages 1-21, April.
  6. McAfee R. Preston, 1995. "Multiproduct Equilibrium Price Dispersion," Journal of Economic Theory, Elsevier, Elsevier, vol. 67(1), pages 83-105, October.
  7. Carlson, John A & McAfee, R Preston, 1983. "Discrete Equilibrium Price Dispersion," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 91(3), pages 480-93, June.
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