Efficiency and equilibrium with dynamic increasing aggregate returns due to demand complementarities

• 成果类型: Article
• 署名作者: Ciccone, A; Matsuyama, K
• 署名单位: University of California System; University of California Berkeley; Northwestern University
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.1111/1468-0262.00034
• 发表日期: 1999
• 页码: 499-525
• 关键词: CONCAVE PRODUCTION FUNCTION; optimal-growth

摘要

When do dynamic nonconvexities at the disaggregate level translate into dynamic nonconvexities at the aggregate level? We address this question in a framework where the production of differentiated intermediate inputs is subject to dynamic nonconvexities, and we show that the answer depends on the degree of Hicks-Alien complementarity (substitutability) between differentiated inputs. In our simplest model, a generalization of judd (1985) and Grossman and Helpman (1991) among many others, there are dynamic nonconvexities at the aggregate level if and only if differentiated inputs are Hicks-Alien complements. We also compare dynamic equilibrium and optimal allocations in the presence of aggregate dynamic nonconvexities due to Hicks-Alien complementarities between differentiated inputs.