We build a New Keynesian model with imperfectly competitive goods markets and heterogeneous people and examine their impact on fiscal multipliers and on the net increase in output and expenditure caused by fiscal policies, using the balanced budget multiplier. Results show that in highly unequal...

On the possibility of reducing public expenditures on medicine through deregulation. The market for medicine is special in three essential respects: (a) The role of the buyer is divided by three agents: the (informed) doctor, who prescribes the medicine, the public health insurance, which pays...