Monopolies and perfect competition in Solow–Uzawa’s general equilibrium growth model
https://doi.org/10.17073/2072-1633-2019-4-405-415
Abstract
The purpose of this study is to introduce monopolies to neoclassical growth theory. This unique contribution attempts to make neoclassical economic growth theory more realistic in modelling the complexity of economic growth and development with different types of market structures. This study is based on a few well-established economic theories in the literature of economics. We frame the model on basis of the Solow–Uzawa two-sector growth model. The modelling of monopoly is based on well-developed monopoly theory. We model behavior of the household with Zhang’s concept of disposable income and utility function. The model endogenously determines profits of monopolies which are equally distributed among the homogeneous population. We build the model and then identify the existence of an equilibrium point by simulation. We conduct comparative static analyses in some parameters.
About the Author
Wei-Bin Zhang
Ritsumeikan Asia Pacific University
Japan
Japan
Wei-Bin Zhang – PhD
1-1 Jumonjibaru, Beppu, Oita 874-8577
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Review
For citations:
Zhang W. Monopolies and perfect competition in Solow–Uzawa’s general equilibrium growth model. Russian Journal of Industrial Economics. 2019;12(4):405-415. https://doi.org/10.17073/2072-1633-2019-4-405-415
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