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Fiscal Spending and National Income with Imperfect Competition

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Author Info
Chao, Chi-Chur
Yu, Eden S H
Abstract

In this paper, the authors examine fiscal policy effectiveness under oligopolistic competition and increasing returns to scale. Their results indicate that fiscal policy is always contractionary in a classical, full-employment economy. Similarly, fiscal policy can reduce national income in a Keynesian, unemployment model. Hence, fiscal policy may not be effective in promoting national income. Copyright 1996 by Blackwell Publishers Ltd and The Victoria University of Manchester

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Publisher Info
Article provided by Blackwell Publishing in its journal The Manchester School of Economic & Social Studies.

Volume (Year): 64 (1996)
Issue (Month): 4 (December)
Pages: 405-20
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:manch2:v:64:y:1996:i:4:p:405-20

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