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Firm dynamics in Melitz-type models

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Abstract

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.

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Authors and Affiliations

  1. Dorodnicyn Computing Center, Russian Academy of Sciences, ul. Vavilova 40, Moscow, 119333, Russia

    I. G. Pospelov

  2. National Research University Higher School of Economics, ul. Myasnitskaya 20, Moscow, 101000, Russia

    S. A. Radionov

Authors
  1. I. G. Pospelov
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  2. S. A. Radionov
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Corresponding author

Correspondence to I. G. Pospelov.

Additional information

Original Russian Text © I.G. Pospelov, S.A. Radionov, 2014, published in Matematicheskoe Modelirovanie, 2014, Vol. 26, No. 2, pp. 65–80.

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Pospelov, I.G., Radionov, S.A. Firm dynamics in Melitz-type models. Math Models Comput Simul 6, 445–455 (2014). https://doi.org/10.1134/S207004821405010X

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  • DOI: https://doi.org/10.1134/S207004821405010X

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