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Market power, the multiplier and economic policy under oligopolistic competition

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Author Info
Ludovic JULIEN () (EconomiX)

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Abstract

In this note, we consider a multisector macroeconomic model under oligopolistic competition. We analyze the effect of an increase of the number of sectors on equilibrium price and on allocations, when the number of oligopolits of each type is constant. We also show that a tax policy has more impact on aggregate activity when the economy has many sectors. Additionally, the tax multiplier is higher than the expenditure multiplier.

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File URL: http://www.accessecon.com/pubs/EB/2008/Volume4/EB-08D40019A.pdf
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Publisher Info
Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 4 (2008)
Issue (Month): 29 ()
Pages: 1-8
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Handle: RePEc:ebl:ecbull:v:4:y:2008:i:29:p:1-8

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Related research
Keywords: strategic interactions;

Find related papers by JEL classification:
D4 - Microeconomics - - Market Structure and Pricing
E0 - Macroeconomics and Monetary Economics - - General

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This page was last updated on 2010-1-5.

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