CHIN, CHI-TING; LAI, CHING-CHONG; KAO, MING-RUEY - In: Australian Economic Papers 49 (2010) 3, pp. 200-208
This paper develops a simple macroeconomic model with imperfect competition and consumption externalities, and uses it to examine whether the marginal cost pricing rule in the partial equilibrium framework can apply to the general equilibrium framework. It is shown that, for welfare to be...