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Modelling Complementary in Monopolistic Competition

  • Matsuyama, K.

In recent years, monopolistic competition models have frequently been applied in macroeconomics, international and interregional economics, and economic growth and development. In this paper, I present a highly selective review in this area, with special emphasis on complementarity and its role in generating multiplier processes, agglomeration, underdevelopment traps, regional disparities, and sustainable growth or, more generally, what Myrdal (1957) called the "principle of circular and cumulative causation."

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Paper provided by Stockholm - International Economic Studies in its series Papers with number 534.

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Length: 30 pages
Date of creation: 1993
Date of revision:
Handle: RePEc:fth:stocin:534
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  22. Howitt, Peter & McAfee, R Preston, 1992. "Animal Spirits," American Economic Review, American Economic Association, vol. 82(3), pages 493-507, June.
  23. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  24. Matsuyama, Kiminori, 1992. "The market size, entrepreneurship, and the big push," Journal of the Japanese and International Economies, Elsevier, vol. 6(4), pages 347-364, December.
  25. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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