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The Multiplier in an Economy with Monopolistic Output Markets and Competitive Labour Markets

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  • Marta Aloi Huw Dixon
  • Phillip Lawler

Abstract

The purpose of this paper is to derive some new results and to link together these results with an existing literature. The focus of the paper is a macroeconomy characterized by monopolistic competition in output markets, but with a perfectly competitive labour market. We explore the implications of imperfect competition for the conduct and effectiveness of fiscal policy for output and employment in both the short run (with the number of firms fixed) and the long run (with free entry and exit of firms).1
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  • Marta Aloi Huw Dixon & Phillip Lawler, "undated". "The Multiplier in an Economy with Monopolistic Output Markets and Competitive Labour Markets," Discussion Papers 96/29, Department of Economics, University of York.
    • Handle: RePEc:yor:yorken:96/29
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    Cited by:

    1. Dennis W. Carlton, 1998. "A Critical Assessment of the Role of Imperfect Competition in Macroeconomics," Palgrave Macmillan Books, in: Steven Brakman & Hans Ees & Simon K. Kuipers (ed.), Market Behaviour and Macroeconomic Modelling, chapter 3, pages 73-104, Palgrave Macmillan.
    2. Huw David Dixon, 2000. "Modelling Market Power in Labour and Product Markets in a Dynamic Economy," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 4(2), pages 104-121, Winter.

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