Balanced Budget Multiplier with Indirect Taxes Under Imperfect Competition

  1. Torregrosa Montaner, Ramón José
Revista:
Estudios económicos

ISSN: 0186-7202

Ano de publicación: 2003

Volume: 18

Número: 1

Páxinas: 3-13

Tipo: Artigo

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Outras publicacións en: Estudios económicos

Resumo

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.

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