Fiscal policy under imperfect competition with flexible prices: An overview and survey

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 5 ; Year: 2011 ; Issue: 2011-3 ; Pages: 1-57 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy
• Subject: Fiscal policy ; imperfect competition ; Finanzpolitik ; Unvollkommener Wettbewerb ; Wirkungsanalyse ; Konjunktur ; Beschäftigungseffekt ; Wohlfahrtseffekt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Costa, Luís F. ; Dixon, Huw David
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2011

Further information

• DOI: doi:10.5018/economics-ejournal.ja.2011-3
• Handle: http://hdl.handle.net/10419/44435
• Last update: 10.03.2025, 11:42 AM CET