Bertoletti, Paolo; Etro, Federico - Dipartimento di Scienze Economiche e Aziendali, … - 2013
We examine the role of per capita income in closed and open economy models of monopolistic competition based on non-homothetic directly additive preferences a la Dixit-Stiglitz, as in Krugman (1979). In a closed economy with free entry income is always neutral on markups and firm size. In a...