Existence of a Short-Run Equilibrium of the Dixit-Stiglitz-Krugman Model. (25th June 2018)

• Record Type: Journal Article
• Authors: Tabata, Minoru; Eshima, Nobuoki
• Other Names: Zhang Guang Academic Editor.
• Is Part Of: Discrete dynamics in nature and society. Volume 2018(2018)
• Publication Date: 2018-06-25
• Subjects: System analysis -- Periodicals; Dynamics -- Periodicals; Chaotic behavior in systems -- Periodicals; Differentiable dynamical systems -- Periodicals; 003.05
• DOI: 10.1155/2018/2193070
• Languages: English
• ISSNs: 1026-0226

Abstract

Abstract : 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.