Author(s):
Costa, Luís F. 
; Dixon, Hum
Date: 2009
Persistent ID: http://hdl.handle.net/10400.5/1862
Origin: Repositório da UTL
Subject(s): Fiscal policy; Imperfect competition
Document details
Fiscal policy under imperfect competition : a survey
Description
This paper surveys the link between imperfect competition and the effects of fiscal policy on output, employment and welfare. We examine static and dynamic models, with and without entry under a variety of assumptions using a common analytical framework. We find that in general there is a robust relationship between the fiscal multiplier and welfare, the tantalizing possibility of Pareto improving fiscal policy is much more elusive. In general, the mechanisms are supply side, and so welfare improving policy, whilst possible, is not a general result.
This paper surveys the link between imperfect competition and the effects of fiscal policy on output, employment and welfare. We examine static and dynamic models, with and without entry under a variety of assumptions using a common analytical framework. We find that in general there is a robust relationship between the fiscal multiplier and welfare, the tantalizing possibility of Pareto improving fiscal policy is much more elusive. In general, the mechanisms are supply side, and so welfare improving policy, whilst possible, is not a general result.
Document Type
Other
Language English
Language English
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