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Osaka Workshop on Economics of Institutions and Organization (#148)

November 8, 2022

Date:  Friday, November 25, 2022 13:30 to 15:00
Please contact 【 rmikami(a)iss.u-tokyo.ac.jp 】in advance, if you want to participate in the meeting.
(*This seminar will be held as a Zoom Meeting.)

Presenter:
Kazuhiro Yamamoto
(Graduate School/School of Economics, Osaka University)

Title: “A welfare analysis of a monocentric city model under monopolistic competition with heterogeneous firms and variable elasticity of substitution preference”

We study the equilibrium and the optimal resource allocation in a monocentric city model under monopolistic competition among heterogeneous firms with a variable elasticity of substitution (VES) preference. First, we show that in an equilibrium, the output of firms with high productivity is under-produced and the output of firms with low productivity is over-produced. Also, firms with too low productivity remain in the market. This is the market distortion brought about by firm heterogeneity and VES preference. Second, an increase in city size increases the output per firm with high productivity, while it decreases the output per firm with low productivity. Thus, the increase in city size acts to correct the market distortions introduced by firm heterogeneity and VES preference.Abstract:Kazuhiro Yamamoto
  • 共催:東京大学社会科学研究所 & IPP研究会
  • 問合せ: 東京大学社会科学研究所 中林真幸研究室 

November 8, 2022by OSIPP Library

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