The Dixit-Stiglitz Model
1. Solve the model step by step
- Note here
- Model properties, comparative statics and intuitions: EI037 L10.
- The basics of “Dixit-Stiglitz lite” by Jonathan I. Dingel: www.columbia.edu/~jid2106/td/dixitstiglitzbasics.pdf
2. Competitive equilibrium vs. optimal allocation by social planer
- Note here
- Dixit, A.K. and Stiglitz, J.E., 1977. Monopolistic competition and optimum product diversity. The American economic review, 67(3), pp.297-308.
- *Mankiw, N.G. and Whinston, M.D., 1986. Free entry and social inefficiency. The RAND Journal of Economics, pp.48-58.
1. Solve the model step by step
- Note here
- Model properties, comparative statics and intuitions: EI037 L10.
- The basics of “Dixit-Stiglitz lite” by Jonathan I. Dingel: www.columbia.edu/~jid2106/td/dixitstiglitzbasics.pdf
2. Competitive equilibrium vs. optimal allocation by social planer
- Note here
- Dixit, A.K. and Stiglitz, J.E., 1977. Monopolistic competition and optimum product diversity. The American economic review, 67(3), pp.297-308.
- *Mankiw, N.G. and Whinston, M.D., 1986. Free entry and social inefficiency. The RAND Journal of Economics, pp.48-58.