This paper addresses the nature of competition in an industry in which firms experience learning-by-doing. It identifies conditions under which competition leads to an emergence of monopoly and conditi ons under which competition persists. Certain distinguished industria l and trade policies are...

In this paper we investigate the macroeconomic equilibria of an economy in which credit contracts have both the adverse selection and incentive effects. The terms of credit contracts include both an interest rate and a collateral requirement. We show that in this richer model all types of...

Formal developments of the Keynes's General Theory, while attempting to achieve a new classical synthesis of the realities of observed macroeconomic fluctuation and unemployment with classical microeconomics, have come to be surprisingly closely tied to the old classical models. Keynes's...