Balanced Budget Multiplier with Indirect Taxes Under Imperfect Competition

  1. Torregrosa Montaner, Ramón José
Aldizkaria:
Estudios económicos

ISSN: 0186-7202

Argitalpen urtea: 2003

Alea: 18

Zenbakia: 1

Orrialdeak: 3-13

Mota: Artikulua

Beste argitalpen batzuk: Estudios económicos

Laburpena

This paper presents two counter-examples to the Keynesian features attributed to imperfect competition in general equilibrium models. In particular, by considering indirect tax rates, a non possitive and monotonically non-increasing relationship between the magnitude of both the balanced budget and welfare multipliers and market-power is obtained.