Existence of a short-run equilibrium of the Dixit-Stiglitz-Krugman model (Q1727016)
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English | Existence of a short-run equilibrium of the Dixit-Stiglitz-Krugman model |
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Existence of a short-run equilibrium of the Dixit-Stiglitz-Krugman model (English)
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20 February 2019
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Summary: Each short-run equilibrium of the Dixit-Stiglitz-Krugman model is defined as a solution to the wage equation when the distributions of workers and farmers are given functions. We extend the discrete nonlinear operator contained in the wage equation as a set-valued operator. Applying the Kakutani fixed-point theorem to the set-valued operator, under the most general assumptions, we prove that the model has a short-run equilibrium.
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