Closed Economy Model with Monopoly in the X Sector
July 23, 2025
This example is a conversion of the Markusen M51 model into Julia. This is a standard two-good, two-factor, closed-economy general-equilibrium model. Activities are X, Y and W (welfare or utility). Factors of production are called unskilled and skilled labor. Unskilled labor is typically called L with a price of PW or just W, and skilled labor is called S with a price of PZ or just Z. PU is the price of a unit of utility (the value of the unit expenditure function). Read more