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Balanced budget multiplier, imperfect competition and indirect taxation

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  • Ramón José Torregrosa Montaner

    ()
    (Universidad de Salamanca)

Abstract

This paper presents a counter-example to sorne new-Keynesian features. In particular, by considering indirect tax rates, 1 obtain a negative and monotonically non-increasing relation between the magnitude of both the balanced budget and the welfare multipliers with respect to the market-power. Este artículo presenta un contraejemplo a algunas propiedades neo-keynesianas de los modelos de equilibrio general con competencia imperfecta. En particular, para el caso de impuestos indirectos, se obtiene una relación negativa y monótona no-creciente para los multiplicadores con presupuesto equilibrado y del bienestar respecto del poder del mercado.

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File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-1999-02.pdf
File Function: Fisrt version / Primera version, 1999
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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 1999-02.

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Length: 20 pages
Date of creation: Feb 1999
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:1999-02

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Keywords: Multiplicador con presupuesto equilibrado; competencia imperfecta; impuesto indirecto Balanced budget multiplier; imperfect competition; indirect taxation;

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