Firm dynamics in Melitz-type models
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Based on the well-known model of monopolistic competition by Melitz with a finite number of firms, we built a number of dynamic models, designed to clarify the dynamic behavior of the original construction. Two variants of the formal Melitz dynamic model are presented, with the quasi-steady state found in one of them. Also, the models with the creation of new firms at the cost of labor and product are presented. We found that in the latter, under certain conditions on the parameters of the economy there is superexponential growth. We calculate the equilibrium states of the models and compare them.
Keywordseconomy of diversity monopolistic competition dynamic models of economy equilibrium
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