We develop a two-sector general equilibrium model with monopolistic competition featuring nonhomothetic production and a variable demand elasticity for the manufactured goods. An increase in the relative price of manufacturing varieties can lead to a decline in total industrial output in our...

In light of automation and a globalised economy, Jon Sunnerfjell presents a study that explores how a once-flourishing industrial community seeks to manage the challenges of post-industrial society and flexible capitalism.[Bokinfo]