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Perfect Competition and the Effects of Energy Price Increases on Economic Activity

  • Finn, Mary G
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    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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    Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.

    Volume (Year): 32 (2000)
    Issue (Month): 3 (August)
    Pages: 400-416

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    Handle: RePEc:mcb:jmoncb:v:32:y:2000:i:3:p:400-416
    Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879

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