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MACROECONOMICS AND IMPERFECT COMPETITION
The macroeconomics of imperfect competition is a field which has witnessed an almost exponential growth in the last twenty years. The reason for this success is simple as this field combines two important, and hitherto incompatible, features: On one hand, like Walrasian or new classical macroeconomics it has fully rigorous microeconomic foundations. On the other hand, like Keynesian macroeconomics (which itself lacked such foundations) it can produce underemployment of resources and macroeconomic coordination failures. This successful blend of the General Equilibrium, Keynesian and Imperfect Competition traditions has become a most influential paradigm in macroeconomics.
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Critical Acclaim
Contents
More Information
The macroeconomics of imperfect competition is a field which has witnessed an almost exponential growth in the last twenty years. The reason for this success is simple as this field combines two important, and hitherto incompatible, features: On one hand, like Walrasian or new classical macroeconomics it has fully rigorous microeconomic foundations. On the other hand, like Keynesian macroeconomics (which itself lacked such foundations) it can produce underemployment of resources and macroeconomic coordination failures. This successful blend of the General Equilibrium, Keynesian and Imperfect Competition traditions has become a most influential paradigm in macroeconomics.
Jean–Pascal Bénassy, himself the author of several pioneering contributions, has assembled leading articles in the field and written an extensive introduction putting them and other contributions in the area into perspective. This volume will be a basic reference source for professors, students and researchers in this important and rapidly expanding field.
Jean–Pascal Bénassy, himself the author of several pioneering contributions, has assembled leading articles in the field and written an extensive introduction putting them and other contributions in the area into perspective. This volume will be a basic reference source for professors, students and researchers in this important and rapidly expanding field.
Critical Acclaim
‘This is an outstanding and excellent collection, which is edited by one of the leading researchers in the field. . . . This volume will make an excellent reference book for any graduate macroeconomics course, and for those wishing to do research in the area.’
– Huw Dixon, Economic Journal
‘. . . Bénassy has written a fine introduction, including an extensive bibliography. The collection of articles makes it possible for the reader to duplicate the genesis of imperfect competition macroeconomics while, at the same time, it emphasizes it central research tendencies. The book is carefully edited and a main contribution to this - still expanding- scientific area. It is highly recommended as a ‘handbook’ to lecturers teaching and researchers working on imperfect competition macroeconomics. Furthermore, it offers a useful introduction for interested economists and (graduate) students.’
– Holger Wacker, Kyklos
– Huw Dixon, Economic Journal
‘. . . Bénassy has written a fine introduction, including an extensive bibliography. The collection of articles makes it possible for the reader to duplicate the genesis of imperfect competition macroeconomics while, at the same time, it emphasizes it central research tendencies. The book is carefully edited and a main contribution to this - still expanding- scientific area. It is highly recommended as a ‘handbook’ to lecturers teaching and researchers working on imperfect competition macroeconomics. Furthermore, it offers a useful introduction for interested economists and (graduate) students.’
– Holger Wacker, Kyklos
Contents
ACKNOWLEDGEMENTS
INTRODUCTION
PART I
GENERAL EQUILIBRIUM MODELS
1. Takashi Negishi (1977), ‘Existence of an Under-Employment Equilibrium’
2. Jean-Pascal Bénassy (1977), ‘A Neokeynesian Model of Price and Quantity Determination in Disequilibrium’
3. Oliver D. Hart (1982), ‘A Model of Imperfect Competition with Keynesian Features’
4. Dennis J. Snower (1983), ‘Imperfect Competition, Underemployment and Crowding-Out’
5. Martin L. Weitzman (1985), ‘The Simple Macroeconomics of Profit Sharing’
6. Jean-Pascal Bénassy (1987), ‘Imperfect Competition, Unemployment and Policy’
7. Olivier Jean Blanchard and Nobuhiro Kiyotaki (1987), ‘Monopolistic Competition and the Effects of Aggregate Demand’
8. Huw Dixon (1987), ‘A Simple Model of Imperfect Competition with Walrasian Features’
9. Huw Dixon (1990), ‘Imperfect Competition, Unemployment Benefit and the Non-Neutrality of Money: An Example’
10. Jean-Pascal Bénassy (1991), ‘Microeconomic Foundations and Properties of a Macroeconomic Model with Imperfect Competition’
PART II
IMPERFECT COMPETITION AND PRICE RIGIDITIES
A MARKET STRUCTURE
11. Paul M. Sweezy (1939), ‘Demand under Conditions of Oligopoly’
12. Joseph E. Stiglitz (1984), ‘Price Rigidities and Market Structure’
B COSTLY PRICE CHANGES
13. Robert J. Barro (1972), ‘A Theory of Monopolistic Price Adjustment’
14. Julio J. Rotemberg (1983), ‘Aggregate Consequences of Fixed Costs of Price Adjustment’
C INVENTORIES
15. Alan S. Blinder (1982), ‘Inventories and Sticky Prices: More on the Microfoundations of macroeconomics’
D IMPERFECT INFORMATION
16. Torben M. Andersen (1985), ‘Price and Output Responsiveness to Nominal Changes under Differential Information’
17. Kiyohiko G. Nishimura (1986), ‘Rational Expectations and Price Rigidity in a Monopolistically Competitive Market’
E STICKY PRICES AND ASSET PRICING
18. Lars E. O. Svensson (1986), ‘Sticky Goods Prices, Flexible Assert Prices, Monopolistic Competition, and Monetary Policy’
F MACROECONOMIC RATIONING
19. Henri R. Sneessens (1987), ‘Investment and the Inflation-Unemployment Tradeoff in a Macroeconomic Rationing Model with Monopolistic Competition’
PART III
LABOUR MARKETS
I TRADE UNIONS
20. Wassily Leontief (1946), ‘The Pure Theory of the Guaranteed Annual Wage Contract’
21. Andrew J. Oswald (1979), ‘Wage Determination in an Economy with Many Trade Unions’
22. Ian M. McDonald and Robert M. Solow (1981), ‘Wage Bargaining and Employment’
23. Lars Calmfors (1982), ‘Employment Policies, Wage Formation and Trade Union Behavior in a Small Open Economy’
B WAGE INDEXATION
24. Jo Anna Gray (1976), ‘Wage Indexation: A Macroeconomic Approach’
C IMPLICIT CONTRACTS
25. Charles R. Bean (1984), ‘Optimal Wage Bargains’
D EFFICIENCY WAGES
26. Carl Shapiro and Joseph E. Stiglitz (1984), ‘Equilibrium Unemployment as a Worker Discipline Device’
E INSIDERS-OUTSIDERS
27. Nils Gottfries and Henrik Horn (1987), ‘Wage Formation and the Persistence of Unemployment’
28. Assar Lindbeck and Dennis J. Snower (1988), ‘Cooperation, Harassment, and Involuntary Unemployment: An Insider-Outsider Approach’
INTRODUCTION
PART I
GENERAL EQUILIBRIUM MODELS
1. Takashi Negishi (1977), ‘Existence of an Under-Employment Equilibrium’
2. Jean-Pascal Bénassy (1977), ‘A Neokeynesian Model of Price and Quantity Determination in Disequilibrium’
3. Oliver D. Hart (1982), ‘A Model of Imperfect Competition with Keynesian Features’
4. Dennis J. Snower (1983), ‘Imperfect Competition, Underemployment and Crowding-Out’
5. Martin L. Weitzman (1985), ‘The Simple Macroeconomics of Profit Sharing’
6. Jean-Pascal Bénassy (1987), ‘Imperfect Competition, Unemployment and Policy’
7. Olivier Jean Blanchard and Nobuhiro Kiyotaki (1987), ‘Monopolistic Competition and the Effects of Aggregate Demand’
8. Huw Dixon (1987), ‘A Simple Model of Imperfect Competition with Walrasian Features’
9. Huw Dixon (1990), ‘Imperfect Competition, Unemployment Benefit and the Non-Neutrality of Money: An Example’
10. Jean-Pascal Bénassy (1991), ‘Microeconomic Foundations and Properties of a Macroeconomic Model with Imperfect Competition’
PART II
IMPERFECT COMPETITION AND PRICE RIGIDITIES
A MARKET STRUCTURE
11. Paul M. Sweezy (1939), ‘Demand under Conditions of Oligopoly’
12. Joseph E. Stiglitz (1984), ‘Price Rigidities and Market Structure’
B COSTLY PRICE CHANGES
13. Robert J. Barro (1972), ‘A Theory of Monopolistic Price Adjustment’
14. Julio J. Rotemberg (1983), ‘Aggregate Consequences of Fixed Costs of Price Adjustment’
C INVENTORIES
15. Alan S. Blinder (1982), ‘Inventories and Sticky Prices: More on the Microfoundations of macroeconomics’
D IMPERFECT INFORMATION
16. Torben M. Andersen (1985), ‘Price and Output Responsiveness to Nominal Changes under Differential Information’
17. Kiyohiko G. Nishimura (1986), ‘Rational Expectations and Price Rigidity in a Monopolistically Competitive Market’
E STICKY PRICES AND ASSET PRICING
18. Lars E. O. Svensson (1986), ‘Sticky Goods Prices, Flexible Assert Prices, Monopolistic Competition, and Monetary Policy’
F MACROECONOMIC RATIONING
19. Henri R. Sneessens (1987), ‘Investment and the Inflation-Unemployment Tradeoff in a Macroeconomic Rationing Model with Monopolistic Competition’
PART III
LABOUR MARKETS
I TRADE UNIONS
20. Wassily Leontief (1946), ‘The Pure Theory of the Guaranteed Annual Wage Contract’
21. Andrew J. Oswald (1979), ‘Wage Determination in an Economy with Many Trade Unions’
22. Ian M. McDonald and Robert M. Solow (1981), ‘Wage Bargaining and Employment’
23. Lars Calmfors (1982), ‘Employment Policies, Wage Formation and Trade Union Behavior in a Small Open Economy’
B WAGE INDEXATION
24. Jo Anna Gray (1976), ‘Wage Indexation: A Macroeconomic Approach’
C IMPLICIT CONTRACTS
25. Charles R. Bean (1984), ‘Optimal Wage Bargains’
D EFFICIENCY WAGES
26. Carl Shapiro and Joseph E. Stiglitz (1984), ‘Equilibrium Unemployment as a Worker Discipline Device’
E INSIDERS-OUTSIDERS
27. Nils Gottfries and Henrik Horn (1987), ‘Wage Formation and the Persistence of Unemployment’
28. Assar Lindbeck and Dennis J. Snower (1988), ‘Cooperation, Harassment, and Involuntary Unemployment: An Insider-Outsider Approach’
