Examines the implications of real wage rigidity for anticipated fiscal policy in the context of a small open economy operating a floating exchange rate. Employs an extended version of a Mundell-Fleming model, containing an explicit treatment of the supply side, in which domestic output depends...

Proposes a model which shows that Stackelberg competition is not necessarily welfare- enhancing compared with Cournot competition. Shows that, although in a simple duopoly model prices in a Stackelberg equilibrium are lower than in a Cournot equilibrium, this is not necessarily true in an...

Examines the implications of real wage rigidity for anticipated fiscal policy in the context of a small open economy operating a floating exchange rate. Employs an extended version of a Mundell‐Fleming model, containing an explicit treatment of the supply side, in which domestic output depends...

Proposes a model which shows that Stackelberg competition is not necessarily welfare‐ enhancing compared with Cournot competition. Shows that, although in a simple duopoly model prices in a Stackelberg equilibrium are lower than in a Cournot equilibrium, this is not necessarily true in an...