Perfect Competition and the Effects of Energy Price Increases on Economic Activity
AbstractRotemberg 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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Bibliographic InfoArticle provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.
Volume (Year): 32 (2000)
Issue (Month): 3 (August)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
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