Bratsiotis, George J. - In: Economics Bulletin 5 (2008) 29, pp. 1-6
This paper shows that in macroeconomic models of product differentiation that are built on CES utility specifications the widely used assumption of approximating cross price effects to zero, (since Dixit-Stiglitz 1979), plays indeed no crucial role. This is true not only when a large number of...
