English, Article edition: MIXED INDUSTRIAL STRUCTURE AND SHORT-RUN FISCAL MULTIPLIER ROBERTO CENSOLO; CATERINA COLOMBO

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  • article
Language
  • English

Edition details

Title
  • MIXED INDUSTRIAL STRUCTURE AND SHORT-RUN FISCAL MULTIPLIER
Author
  • ROBERTO CENSOLO
  • CATERINA COLOMBO
Physical Description
  • article
Notes
  • Existing studies on the fiscal multiplier under imperfect competition assume a symmetric market structure with identical firms. This paper examines the fiscal policy implications of introducing a multisectoral economy, where a composite commodity is offered in many varieties within a market of monopolistic competition and a homogeneous good is produced in a perfectly competitive environment. Within the context of this mixed industrial structure we show that the size of the short-run multiplier crucially depends on the composition of public expenditure chosen by the government. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd/​University of Adelaide and Flinders University.
  • RePEc:bla:ausecp:v:47:y:2008:i:2:p:156-165
Language
  • English
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