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Monopolistic competition and the stability of industrial equilibrium

journal contribution
posted on 1987-01-01, 00:00 authored by Chi-Chur Chao, A Takayama
We consider a two-sector economy, consisting of the differentiated-goods and the homogeneous-goods industries, where the former is monopolistically competitive with scale-economies. We show that the Chamberlinian tangency solution is unstable when the supply side is characterized by the Heckscher-Ohlin two-factor model. © 1987.

History

Journal

Economics letters

Volume

23

Issue

4

Pagination

317 - 322

Publisher

Elsevier

ISSN

0165-1765

Publication classification

CN.1 Other journal article

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