This paper examines the role of market size in a model of price competition with imperfect substitutes that bridges the Chamberlin and Bertrand-Edgeworth approaches. The author investigates the role of two fundamental parameters in the existence of an equilibrium: the market size, given by the...

Objective demand curves in general equilibrium with explicitly modeled price makers have been defined so far in a number of specific cases. This paper gives a general definition of such an objective demand curve. The associated general equilibrium concept is defined, and sufficient existence...

This graduate textbook is a "primer" in macroeconomics. It starts with essential undergraduate macroeconomics and develops in a simple and rigorous manner the central topics of modern macroeconomic theory including rational expectations, growth, business cycles, money, unemployment, government...

This article studies under which conditions interest rate rules "à la Taylor" results, which are standard in the traditional "Ricardian" taxation, Financial constraints. single dynasty of consumers: (1) a pure interest rate peg leads to nominal price indeterminacy; (2) a strong reaction...

We develop in this article a new form of wage contracts similar in spirit to those developed by Calvo (1983), and integrate these contracts into a dynamic stochastic grneral equilibrium model. Rational wage setting by utility maximizing trade-unions is explicitly modelled. We derive the optimal...