This paper constructs a general equilibrium model with monopolistically competitive firms and endogenous markups where government spending consists of both consumption and investment goods. It is shown that when markups are countercyclical, an increase in the share of investment goods in total...

Traditionally share price returns and their variance have been explained by factors linked to the operations of the company such as systematic risk, corporate size and P/E ratios or by factors related to the influence of the macroeconomic environment. In these models, the institutional...

This paper constructs a general equilibrium model with monopolistically competitive firms and endogenous markups where government spending consists of both consumption and investment goods. It is shown that when markups are countercyclical, an increase in the share of investment goods in total...

We consider the case of a duopoly selling perfect substitutes except for their level of capacity. Firms are playing a two-stage game in which they take capacities as given when they play in prices and anticipate the price outcome when they play in capacities. We analyze the case where consumers...

This paper assesses changes in the size and scope of government in 24 transition economies. While these governments have reduced public expenditures in relation to GDP, and public employment as a share of population, some indicators suggest that the size remains high (eg, rising indebtedness, a...