Discussion Papers no. 161

Monopolistic competition, resource allocation and the effects of industrial policy

An indicator of allocation effects of industrial policy is derived from a theoretical framework of monopolistic competition. The indicator gives a qualitative picture of how industrial policy affects industry structure and resource allocation, it identifies the policy measures that work as industry assistance under various assumptions about underlying parameters, and it allows a consistent comparison of the assistance effects of different measures. Indicator calculations of industrial policy represent an efficient alternative to numerical general equilibrium analyses, especially in international comparisons. Illustrative indicator calculations of Norwegian industrial policy are presented.

Om publikasjonen

Tittel

Monopolistic competition, resource allocation and the effects of industrial policy

Ansvarlig

Torbjørn Hægeland

Serie og -nummer

Discussion Papers no. 161

Utgiver

Statistics Norway, Research Department

Emne

Discussion Papers

Antall sider

22

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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