On price determination : a three-section model

価格の決定について : 三部門モデルでの考察

On price determination : a three-section model

Creators Umada Tetsuji

The purpose of this paper is to analyze the determination of prices and the amounts of production in 3-sector model. The prices of each sector are determined to maximize the value added based on assumed demand function for each sector. The amount of production is determined in order to equalize the supply to demand. When nominal wage rate is constant, the increase of investment goods increase the amount of raw material goods and consumption good. When nominal wage rate changes according to the amount of production, the increase of investment goods doesn't always increase the amount of raw material goods and consumption goods.

[ISSN]0513-1758

[NCID]AN00243258