Primary inputs supply, government size and welfare in the presence of monopolistic competition
The paper considers the impact of exogenous changes in the supply of primary inputs on government size and welfare in the presence of monopolistic competition. By making use of a simple general equilibrium model, this paper shows that an increase in the supply of labor increases (decreases) the relative size of government if the share of capital in the final good sector is larger (smaller) than the share of capital in the public good sector. An increase in the supply of capital decreases the relative size of government only if the share of capital in the final good sector is equal to (or larger) than the share of capital in the public good sector. An increase in the overall size of the country decreases the relative government size. In addition, an increase in the supply of both capital and labor increases welfare.
Volume (Year): 41 (2004)
Issue (Month): 2 (December)
|Contact details of provider:|| Postal: |
Web page: http://www.econ.upd.edu.ph/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:phs:prejrn:v:41:y:2004:i:2:p:81-91. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reuben T. Campos)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.