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Balanced budget multiplier, imperfect competition and indirect taxation

Author

Listed:
  • 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.

Suggested Citation

  • Ramón José Torregrosa Montaner, 1999. "Balanced budget multiplier, imperfect competition and indirect taxation," Working Papers. Serie EC 1999-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasec:1999-02
    as

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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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    Citations

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    Cited by:

    1. Balamatsias, Pavlos, 2017. "Inequality, imperfect competition, and fiscal policy," MPRA Paper 82178, University Library of Munich, Germany.
    2. Soldatos, Gerasimos, 2014. "Indirect Tax Incidence under Inelastic Underground Economy Demand," MPRA Paper 64598, University Library of Munich, Germany.

    More about this item

    Keywords

    Multiplicador con presupuesto equilibrado; competencia imperfecta; impuesto indirecto Balanced budget multiplier; imperfect competition; indirect taxation;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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