The Monopolistic Competition Revolution in Retrospect

In this 2003 text, experts analyse the second monopolistic competition revolution on the modeling of imperfectly competitive markets.

Steven Brakman (Edited by), Ben J. Heijdra (Edited by)

9780521819916, Cambridge University Press

Hardback, published 5 January 2001

512 pages
23.6 x 16 x 3.6 cm, 0.942 kg

Review of the hardback: '… an important book that should be read by all research economists and that will be of particular interest to those concerned with international trade. … One cannot help being inspired by this volume.' Journal of International Economics

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 The text includes a comprehensive survey of both monopolistic competition revolutions, and previously unpublished working papers by Dixit and Stiglitz that led to their famous 1977 paper.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.

List of contributors
Preface
1. Introduction Steven Brakman and Ben J. Heijdra
Part I. Underground Classics: 2. Monopolistic competition and the capital market Joseph E. Stiglitz
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. Ethier
Part III. International Trade: 8. Monopolistic competition and international trade theory J. Peter Neary
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 Richard E. Baldwin, Rikard Forslid, Philippe Martin, Gianmarco I. P. Ottaviano and Frederic Robert-Nicoud
11. Globalisation, wages and unemployment: a new economic geography perspective Jolanda J. W. 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 implications Russell W. Cooper
18. Does competition make firms enterprising or defensive? Jan Boone
19. Rationalisation and specialisation in start-up investment Christian Keuschnigg
20. Industrial policy in a small open economy Leon J. H. Bettendorf and Ben J. Heijdra
Index.

Subject Areas: Political economy [KCP], International trade [KCLT], Economic theory & philosophy [KCA]