Market power, the multiplier and economic policy under oligopolistic competition

In this note, we consider a multisector macroeconomic model under oligopolistic competition. We analyze the effect of an increase of the number of sectors on equilibrium price and on allocations, when the number of oligopolits of each type is constant. We also show that a tax policy has more impact on aggregate activity when the economy has many sectors. Additionally, the tax multiplier is higher than the expenditure multiplier.

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Year of publication:	2008
Authors:	JULIEN, Ludovic
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 4.2008, 29, p. 1-8
Publisher:	AccessEcon
Subject:	strategic interactions

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	D4 - Market Structure and Pricing ; E0 - Macroeconomics and Monetary Economics. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005767618