Increasing Returns and Economic Efficiency

Project: Research

Project Details

Project Description

Economic Analysis, especially in its crowning achievement of general equilibrium theory, is based on the absence of increasing returns. However, increasing returns are clearly very important in the real economy. This project is to advance understanding of the problem of economic efficiency in the presence of increasing returns by considering organizational efficiency in addition to the allocational efficiency emphasised in the traditional framework. The importance of organizational efficiency is highlighted in a new framework advanced by Yang in association with the CI and others, The proposed project will integrate models of the traditional and the new frameworks to provide a more realistic analysis and cogent policy implications.
StatusFinished
Effective start/end date1/01/0531/12/08

Funding

  • Australian Research Council (ARC): AUD256,259.00