English, Article, Journal or magazine article edition: FIXED COSTS, THE BALANCED-BUDGET MULTIPLIER AND WELFARE Partha Sen

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Bookmark: http://trove.nla.gov.au/version/66185
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • FIXED COSTS, THE BALANCED-BUDGET MULTIPLIER AND WELFARE
Author
  • Partha Sen
Physical Description
  • preprint
Notes
  • In a two-sector model, where one of the sectors is monopolistically competitive and subject to increasing returns to scale but without love for variety, we analyze the effects of a balanced budget fiscal expansion. Such an expansion could increase the welfare of the representative individual, if elasticities of substitution in production and consumption are low. A reorganization of production takes place--increasing returns enabling a rise in real income.
  • New-Keynesian Models, Monopolistic Competition
  • RePEc:cde:cdewps:171
Language
  • English
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