Profit rates equalization and balanced growth in a multi-sector model of classical competition

Roman Kiedrowski


The article refers to the old issue of profit rates equalization, originated from the works of Smith and Ricardo. It is devoted to a dynamic, recursive model of classical competition in a growing economy. The economy is composed of n firms (sectors) producing n different goods. Decisions on prices and production are made in each period by firms managers who take production capacities, determined by fixed capital, as given. All firms are owned by one representative capital owner (a capitalist) who decides in each period on his consumption and investment funds and next distributes the investment fund among firms on the basis of their capital profitability differentials. The author presents proof of existence, uniqueness and stability of a long-run classical equilibrium, which is equivalent to a balanced, long-run growth of fixed capital, output and consumption with equal profit rates and zero inventories.
Author Roman Kiedrowski (WIiGE / KEM)
Roman Kiedrowski,,
- Department of Mathematical Economics
Journal seriesJournal of Mathematical Economics, ISSN 0304-4068, (A 15 pkt)
Issue year2018
Publication size in sheets0.7
Keywords in EnglishProfit rates equalization; Classical equilibrium; Classical competition; Prices of production, Balanced growth, Multi-sector models
ASJC Classification2002 Economics and Econometrics; 2604 Applied Mathematics
Languageen angielski
Score (nominal)15
Score sourcejournalList
ScoreMinisterial score = 15.0, 09-04-2020, ArticleFromJournal
Publication indicators WoS Citations = 0; Scopus SNIP (Source Normalised Impact per Paper): 2018 = 0.991; WoS Impact Factor: 2018 = 0.634 (2) - 2018=0.725 (5)
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