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| Introduction
to the Series |
v |
| List
of tables and figures |
xii |
| Preface |
xvii |
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1
Introduction and summary
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1
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5
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2 Price
formation in input-output models
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5
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| 2.1 Static model |
6 |
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| 2.2 Dynamic model |
13 |
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| 2.3 Summary |
15 |
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| Appendix 2.1 Nonnegative
matrices |
16 |
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| Appendix 2.2
Difference equations |
18 |
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3 Dynamics of price
formation
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21
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| 3.1 The production-period |
21 |
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| 3.2 The total production-period
of final products |
28 |
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| 3.3 Costs and prices
under historic-cost pricing |
35 |
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| 3.4 Simulations |
40 |
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| 3.5 Summary |
51 |
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52
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4 The law of one
price for a small open economy
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52
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| 4.1 The law of one price
for the Netherlands |
54 |
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| 4.2 Aggregation and the
law of one price |
61 |
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| 4.3 Summary |
66 |
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| Appendix 4.1
Unit values and price index numbers |
67 |
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5 Price formation in
general equilibrium
|
72
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| 5.1 General equilibrium |
72 |
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| 5.2 Excess-demand
functions |
78 |
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| 5.3 The net-export
functions of a small open economy |
82 |
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| 5.4 Price formation in a
small open economy |
88 |
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| 5.5 Price formation with
perfect domestic and foreign substitutes |
92 |
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| 5.6 Specification of the
price equation |
93 |
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| 5.7 Empirical analysis |
98 |
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| 5.8 Summary |
107 |
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109
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6 Foreign competition
and price formation
|
109
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| 6.1 The profit-maximizing
price |
110 |
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| 6.2 The price elasticity
of demand |
112 |
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| 6.3 The price equation |
117 |
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| 6.4 Empirical analysis |
120 |
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| 6.5 Summary |
123 |
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7 Price formation
under imperfect competition: Extensions to the basic
model
|
126
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| 7.1 A general price
equation for consumer goods |
126 |
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| 7.2 Price formation of
producer goods |
130 |
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| 7.3 Price formation of a
multi-product firm |
134 |
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| 7.4 Marginal cost,
average cost, and capacity utilization |
135 |
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| 7.5 Specification of the
general price equation |
138 |
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| 7.6 Empirical analysis |
141 |
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| 7.7 Summary |
146 |
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| Appendix 7.1
Some alternative estimates |
149 |
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8 Market structure
and price formation
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156
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| 8.1 Measurement of
concentration |
156 |
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| 8.2 Price leadership |
160 |
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| 8.3 Barriers to entry |
162 |
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| 8.4 Price formation under
oligopoly |
163 |
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| 8.5 Empirical analysis |
166 |
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| 8.6 Prices, demand, and
concentration |
173 |
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| 8.7 Summary |
177 |
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9 Price formation in
general equilibrium under imperfect competition
|
178
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| 9.1 Comparative statics
of consumer-good prices |
178 |
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| 9.2 Two-good example |
182 |
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| 9.3 Comparative statics
with consumer and producer goods |
186 |
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| 9.4 Specification of the
elasticity matrices |
188 |
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| 9.5 Empirical analysis |
189 |
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| 9.6 Summary |
193 |
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| Appendix 9.1 The
elasticity matrices |
196 |
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APPENDICES
|
199
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A Two-stage budgeting
|
199
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| A.1 Consumer demand under
two-stage budgeting |
199 |
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| A.2 Producer demand under
two-stage budgeting |
203 |
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B Consumer and
producer demand systems
|
205
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| B.1 The CES demand system |
205 |
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| B.2 The Rotterdam system |
209 |
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C Data
|
212
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| C.1 Data for Part 1 |
212 |
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| C.2 Data for Part 2 |
213 |
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| C.3 Data for Part 3 |
215 |
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References, List of
notation, Indexes
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| References |
234 |
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| List
of notation |
240 |
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| Author
index |
242 |
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| Subject
index |
245 |
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