IDEAS home Printed from https://ideas.repec.org/a/eee/pubeco/v77y2000i3p383-406.html
   My bibliography  Save this article

Endogenous markups and the effects of income taxation:: Theory and evidence from OECD countries

Author

Listed:
  • Wu, Yangru
  • Zhang, Junxi

Abstract

No abstract is available for this item.

Suggested Citation

  • Wu, Yangru & Zhang, Junxi, 2000. "Endogenous markups and the effects of income taxation:: Theory and evidence from OECD countries," Journal of Public Economics, Elsevier, vol. 77(3), pages 383-406, September.
  • Handle: RePEc:eee:pubeco:v:77:y:2000:i:3:p:383-406
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0047-2727(99)00081-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(2), pages 217-235.
    2. Baxter, Marianne & King, Robert G, 1993. "Fiscal Policy in General Equilibrium," American Economic Review, American Economic Association, vol. 83(3), pages 315-334, June.
    3. Cooley, Thomas F & Hansen, Gary D, 1989. "The Inflation Tax in a Real Business Cycle Model," American Economic Review, American Economic Association, vol. 79(4), pages 733-748, September.
    4. Norrbin, Stefan C, 1993. "The Relation between Price and Marginal Cost in U.S. Industry: A Contradiction," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 1149-1164, December.
    5. Judd, Kenneth L, 1985. "Short-run Analysis of Fiscal Policy in a Simple Perfect Foresight Model," Journal of Political Economy, University of Chicago Press, vol. 93(2), pages 298-319, April.
    6. Yang, Xiaokai & Heijdra, Ben J, 1993. "Monopolistic Competition and Optimum Product Diversity: Comment," American Economic Review, American Economic Association, vol. 83(1), pages 295-301, March.
    7. Farmer Roger E. A. & Guo Jang-Ting, 1994. "Real Business Cycles and the Animal Spirits Hypothesis," Journal of Economic Theory, Elsevier, vol. 63(1), pages 42-72, June.
    8. repec:bla:scandj:v:95:y:1993:i:4:p:607-25 is not listed on IDEAS
    9. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    10. Roeger, Werner, 1995. "Can Imperfect Competition Explain the Difference between Primal and Dual Productivity Measures? Estimates for U.S. Manufacturing," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 316-330, April.
    11. Dixon, Huw David & Rankin, Neil, 1994. "Imperfect Competition and Macroeconomics: A Survey," Oxford Economic Papers, Oxford University Press, vol. 46(2), pages 171-199, April.
    12. Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-1294, September.
    13. repec:bla:scandj:v:98:y:1996:i:2:p:219-31 is not listed on IDEAS
    14. John Y. Campbell & N. Gregory Mankiw, 1989. "Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence," NBER Chapters, in: NBER Macroeconomics Annual 1989, Volume 4, pages 185-246, National Bureau of Economic Research, Inc.
    15. Hall, Robert E, 1988. "Intertemporal Substitution in Consumption," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 339-357, April.
    16. Schmitt-Grohe, Stephanie, 1997. "Comparing Four Models of Aggregate Fluctuations due to Self-Fulfilling Expectations," Journal of Economic Theory, Elsevier, vol. 72(1), pages 96-147, January.
    17. Judd, Kenneth L., 1982. "An alternative to steady-state comparisons in perfect foresight models," Economics Letters, Elsevier, vol. 10(1-2), pages 55-59.
    18. Richard Startz, 1989. "Monopolistic Competition as a Foundation for Keynesian Macroeconomic Models," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(4), pages 737-752.
    19. Dixon,Huw David & Rankin,Neil, 1995. "The New Macroeconomics," Cambridge Books, Cambridge University Press, number 9780521479479, October.
    20. Aschauer, David Alan, 1988. "The Equilibrium Approach to Fiscal Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 20(1), pages 41-62, February.
    21. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Toshiki Tamai, 2006. "Endogenous Market Structure and Fiscal Policy in an Endogenous Growth Model with Public Capital," Economics Bulletin, AccessEcon, vol. 15(11), pages 1-10.
    2. Javier Coto-Martínez & Carlos Garriga & Fernando Sánchez-Losada, 2007. "Optimal Taxation with Imperfect Competition and Aggregate Returns to Specialization," Journal of the European Economic Association, MIT Press, vol. 5(6), pages 1269-1299, December.
    3. Brito, Paulo B. & Costa, Luís F. & Dixon, Huw, 2013. "Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups," Journal of Economic Dynamics and Control, Elsevier, vol. 37(11), pages 2287-2306.
    4. Bertinelli, Luisito & Cardi, Olivier & Sen, Partha, 2013. "Deregulation shock in product market and unemployment," Journal of Economic Dynamics and Control, Elsevier, vol. 37(4), pages 711-734.
    5. Dobrinsky, Rumen & Korosi, Gabor & Markov, Nikolay & Halpern, Laszlo, 2006. "Price markups and returns to scale in imperfect markets: Bulgaria and Hungary," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 92-110, March.
    6. Luís Costa, 2006. "Entry and fiscal policy effectiveness in a small open economy within a Monetary Union," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 5(1), pages 45-65, May.
    7. Olivier Cardi & Romain Restout, 2011. "Fiscal shocks in a two sector open economy," Working Papers hal-00567855, HAL.
    8. Casey B. Mulligan, 2002. "A Century of Labor-Leisure Distortions," NBER Working Papers 8774, National Bureau of Economic Research, Inc.
    9. Tatsuro Iwaisako, 2016. "Effects of Patent Protection on Optimal Corporate Income and Consumption Taxes in an R&D‐Based Growth Model," Southern Economic Journal, John Wiley & Sons, vol. 83(2), pages 590-608, October.
    10. Patro, Dilip K. & Wald, John K. & Wu, Yangru, 2002. "Explaining exchange rate risk in world stock markets: A panel approach," Journal of Banking & Finance, Elsevier, vol. 26(10), pages 1951-1972, October.
    11. Coto-Martinez, Javier, 2006. "Public capital and imperfect competition," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 349-378, January.
    12. Yangru Wu & Junxi Zhang, 2003. "Uniqueness and Stability of Equilibria in a Model with Endogenous Markups and Labor Supply," Annals of Economics and Finance, Society for AEF, vol. 4(1), pages 177-191, May.
    13. Olivier Cardi & Romain Restout, 2014. "Unanticipated vs. Anticipated Tax Reforms in a Two-Sector Open Economy," Open Economies Review, Springer, vol. 25(2), pages 373-406, April.
    14. Rumen Dobrinsky & Gabor Korosi & Nikolay Markov & Laszlo Halpern, 2004. "Firms’ Price Markups and Returns to Scale in Imperfect Markets - Bulgaria and Hungary," CERS-IE WORKING PAPERS 0412, Institute of Economics, Centre for Economic and Regional Studies.
    15. Olivier CARDI & Romain RESTOUT, 2010. "Sectoral Effects of Tax Reforms in an Open Economy," LIDAM Discussion Papers IRES 2010045, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    16. Edward Calthrop & Bruno Borger, 2007. "On Tax Over-Shifting in Wage Bargaining Models," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(2), pages 127-143, June.
    17. Mulligan Casey B, 2001. "Aggregate Implications of Indivisible Labor," The B.E. Journal of Macroeconomics, De Gruyter, vol. 1(1), pages 1-35, April.
    18. Luís F. Costa, 2004. "Endogenous Markups and Fiscal Policy," Manchester School, University of Manchester, vol. 72(s1), pages 55-71, September.
    19. Silvia Bertarelli & Roberto Censolo, 2006. "Taste For Variety, Taste For Novelty And Price Behaviour," Metroeconomica, Wiley Blackwell, vol. 57(1), pages 93-111, February.
    20. Shiou‐Yen Chu, 2022. "Markups, inequality and monetary‐fiscal policies," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(4), pages 367-395, September.
    21. Junxi Zhang, 2007. "Endogenous Markups, Intensity of Competition, and Persistence of Business Cycles," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 546-565, October.
    22. repec:ebl:ecbull:v:15:y:2006:i:11:p:1-10 is not listed on IDEAS
    23. Joseph Plasmans, 2011. "Productivity and Competition from a Global Point of View," Chapters, in: Jonathan Michie (ed.), The Handbook of Globalisation, Second Edition, chapter 14, Edward Elgar Publishing.
    24. Mulligan, Casey B., 2001. "A Century of Labor-Leisure Distortions," Working Papers 170, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    25. Georgios Christou & Panagiotis Chronis, 2017. "Markups and fiscal policy: analytical framework and an empirical investigation," Working Papers 221, Bank of Greece.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Coto-Martinez, Javier, 2006. "Public capital and imperfect competition," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 349-378, January.
    2. Jaimovich, Nir, 2007. "Firm dynamics and markup variations: Implications for sunspot equilibria and endogenous economic fluctuations," Journal of Economic Theory, Elsevier, vol. 137(1), pages 300-325, November.
    3. Yangru Wu & Junxi Zhang, 2003. "Uniqueness and Stability of Equilibria in a Model with Endogenous Markups and Labor Supply," Annals of Economics and Finance, Society for AEF, vol. 4(1), pages 177-191, May.
    4. Shu‐hua Chang & Juin‐jen Chang, 2015. "Optimal government spending in an economy with imperfectly competitive goods and labor markets," Southern Economic Journal, John Wiley & Sons, vol. 82(2), pages 385-407, October.
    5. Hassan Molana & Junxi Zhang, 2001. "Market Structure and Fiscal Policy Effectiveness," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(1), pages 147-164, March.
    6. Junxi Zhang, 2007. "Endogenous Markups, Intensity of Competition, and Persistence of Business Cycles," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 546-565, October.
    7. Luís F. Costa & Huw Dixon, 2009. "Fiscal Policy under Imperfect Competition: A Survey," Working Papers Department of Economics 2009/25, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    8. repec:rre:publsh:v:34:y:2004:i:1:p:72-94 is not listed on IDEAS
    9. Heijdra, Ben J. & Ligthart, Jenny E., 2007. "Fiscal policy, monopolistic competition, and finite lives," Journal of Economic Dynamics and Control, Elsevier, vol. 31(1), pages 325-359, January.
    10. Sjögren, Anna, 1998. "Human Capital, R&D and Economic Growth," SSE/EFI Working Paper Series in Economics and Finance 238, Stockholm School of Economics.
    11. Wu, Yangru & Zhang, Junxi, 1998. "Endogenous growth and the welfare costs of inflation: a reconsideration," Journal of Economic Dynamics and Control, Elsevier, vol. 22(3), pages 465-482, March.
    12. Jaimovich, Nir & Floetotto, Max, 2008. "Firm dynamics, markup variations, and the business cycle," Journal of Monetary Economics, Elsevier, vol. 55(7), pages 1238-1252, October.
    13. Bucci Alberto & Raurich Xavier, 2017. "Population and Economic Growth Under Different Growth Engines," German Economic Review, De Gruyter, vol. 18(2), pages 182-211, May.
    14. Olivier CARDI & Romain RESTOUT, 2010. "Sectoral Effects of Tax Reforms in an Open Economy," LIDAM Discussion Papers IRES 2010045, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    15. Junius, Karsten, 1997. "Economies of scale: A survey of the empirical literature," Kiel Working Papers 813, Kiel Institute for the World Economy (IfW Kiel).
    16. Olivier Cardi & Romain Restout, 2011. "Fiscal shocks in a two sector open economy," Working Papers hal-00567855, HAL.
    17. José Luis Torres Chacon, 2015. "Introduction to Dynamic Macroeconomic General Equilibrium Models," Vernon Press Titles in Economics, Vernon Art and Science Inc, edition 2, number 54.
    18. Coenen, Günter, 1998. "Intertemporal effects of fiscal policy in an RBC model," Discussion Paper Series 1: Economic Studies 1998,02e, Deutsche Bundesbank.
    19. Marco Di Cintio, 2015. "Intra-Sector and Inter-Sector Competition in a Model of Growth," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2015(116), pages 74-89.
    20. Georgios Christou & Panagiotis Chronis, 2017. "Markups and fiscal policy: analytical framework and an empirical investigation," Working Papers 221, Bank of Greece.
    21. Guo, Jang-Ting, 2004. "Increasing returns, capital utilization, and the effects of government spending," Journal of Economic Dynamics and Control, Elsevier, vol. 28(6), pages 1059-1078, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:77:y:2000:i:3:p:383-406. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505578 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.