Edge, Rochelle M. (contributor); Laubach, Thomas (contributor) - 2008
,t, is produced according to the Dixit-Stiglitz technology,
Yf,t =
parenleftBiggintegraldisplay 1
0
Yf,t(x)
Θp,t−1
Θp,t dx …
parenrightBigg Θp,t
Θp,t−1
, (1)
where Yf,t(x) denotes the quantity of the xth differentiated goods used in production and
Θp,t is … inputs from the economy’s differentiated
intermediate goods producers who supply an output Ym,t(x). Not all of the …