Rotemberg and Woodford (1996) present new striking facts concerning the effects of energy price increases on economic activity. They advance a theory of imperfect competition to successfully address these facts--suggesting that imperfect competition is a necessary ingredient for success. The present study shows that a theory of perfect competition rises to the challenge of explaining the Rotemberg-Woodford evidence.
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Volume (Year): 32 (2000) Issue (Month): 3 (August) Pages: 400-416 Download reference. The following formats are available: HTML
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