A Dynamic General-equilibrium Model of Mixed Oligopoly Market with Public Firms’Cost Reducing R&D InvestmentA Dynamic General-equilibrium Model of Mixed Oligopoly Market with Public Firms’Cost Reducing R&D Investment
26 , 2017-06 , Graduate School of Economics and Osaka School of International Public Policy (OSIPP) Osaka University
This article presents a dynamic general equilibrium model of mixed oligopoly. In this model,public firms engage in manufacturing differentiated goods and cost-reducing R&D investments.This paper shows that public firms suddenly disappear from the mixed oligopoly market when the parameter of competitiveness exceeds the threshold value. This paper also shows that subsidies are larger when public firms regard a representative household as more important.