Monopolistic Competition as a Foundation for Keynesian Macroeconomic Models

S-Tier
Journal: Quarterly Journal of Economics
Year: 1989
Volume: 104
Issue: 4
Pages: 737-752

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A general equilibrium macroeconomic model based on monopolistic competition is presented. The model exhibits a traditional multiplier in the short run, but due to free entry, the multiplier disappears in the long run. By construction all agents are fully rational. The Keynesian results are a consequence of the assumption of monopolistic competition, which creates a divergence between optimal private behavior and optimal social behavior.

Technical Details

RePEc Handle
repec:oup:qjecon:v:104:y:1989:i:4:p:737-752.
Journal Field
General
Author Count
1
Added to Database
2026-01-29