GUNJI Hiroshi   Faculty of Economics Department of Modern Economics   Professor

■ Title   The Panzar-Rosse Statistic Revisited

■ Outline   In this note, we prove that even if the technology of firms exhibits increasing returns to scale, the Panzar-Rosse statistic in a monopolistic competitive market is still available and has a negative value. Further, we show that the statistic would be greater than unity if firms with increasing-returns-to-scale technology were to choose a saddle point under certain conditions. This implies that the value of greater than unity is not actually observed.   Hiroshi Gunji and Yuan Yuan   Collaboration   Theoretical Economics Letters      2017/01

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