GDP steady-state multipliers under monopolistic competition revisited

Bibliographic Details
Main Author: Costa, Luis F.
Publication Date: 2007
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: http://hdl.handle.net/10400.5/30157
Summary: New Keynesian general-equilibrium static models showed the fiscal multiplier is an increasing function of the degree of monopoly. Here, I develop a simple intertemporal model allowing us to study the steady-state role of optimal capital stock (and depreciation) in the fiscal policy transmission mechanism. The GDP multiplier may be locally decreasing in the degree of monopoly when the number of firms is fixed, but results depend strongly on the set of parameter values chosen. Using a net-output definition or allowing for free entry leads to unambiguous dominance of the long-run monopolistic multiplier over the Walrasian one.
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spelling GDP steady-state multipliers under monopolistic competition revisitedMultiplierFiscal PolicyMonopolistic CompetitionNew Keynesian general-equilibrium static models showed the fiscal multiplier is an increasing function of the degree of monopoly. Here, I develop a simple intertemporal model allowing us to study the steady-state role of optimal capital stock (and depreciation) in the fiscal policy transmission mechanism. The GDP multiplier may be locally decreasing in the degree of monopoly when the number of firms is fixed, but results depend strongly on the set of parameter values chosen. Using a net-output definition or allowing for free entry leads to unambiguous dominance of the long-run monopolistic multiplier over the Walrasian one.Springer VerlagRepositório da Universidade de LisboaCosta, Luis F.2024-02-20T09:33:28Z20072007-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/30157engCosta, Luís F. (2007). "GDP steady-state multipliers under monopolistic competition revisited". Portuguese Economic Journal, Vol. 6, No. 3: pp.181-204. (Search PDF in 2024)DOI 10.1007/s10258-007-0027-81617-9838info:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2025-03-17T16:24:02Zoai:repositorio.ulisboa.pt:10400.5/30157Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-29T04:12:40.905251Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv GDP steady-state multipliers under monopolistic competition revisited
title GDP steady-state multipliers under monopolistic competition revisited
spellingShingle GDP steady-state multipliers under monopolistic competition revisited
Costa, Luis F.
Multiplier
Fiscal Policy
Monopolistic Competition
title_short GDP steady-state multipliers under monopolistic competition revisited
title_full GDP steady-state multipliers under monopolistic competition revisited
title_fullStr GDP steady-state multipliers under monopolistic competition revisited
title_full_unstemmed GDP steady-state multipliers under monopolistic competition revisited
title_sort GDP steady-state multipliers under monopolistic competition revisited
author Costa, Luis F.
author_facet Costa, Luis F.
author_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Costa, Luis F.
dc.subject.por.fl_str_mv Multiplier
Fiscal Policy
Monopolistic Competition
topic Multiplier
Fiscal Policy
Monopolistic Competition
description New Keynesian general-equilibrium static models showed the fiscal multiplier is an increasing function of the degree of monopoly. Here, I develop a simple intertemporal model allowing us to study the steady-state role of optimal capital stock (and depreciation) in the fiscal policy transmission mechanism. The GDP multiplier may be locally decreasing in the degree of monopoly when the number of firms is fixed, but results depend strongly on the set of parameter values chosen. Using a net-output definition or allowing for free entry leads to unambiguous dominance of the long-run monopolistic multiplier over the Walrasian one.
publishDate 2007
dc.date.none.fl_str_mv 2007
2007-01-01T00:00:00Z
2024-02-20T09:33:28Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/30157
url http://hdl.handle.net/10400.5/30157
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Costa, Luís F. (2007). "GDP steady-state multipliers under monopolistic competition revisited". Portuguese Economic Journal, Vol. 6, No. 3: pp.181-204. (Search PDF in 2024)
DOI 10.1007/s10258-007-0027-8
1617-9838
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Springer Verlag
publisher.none.fl_str_mv Springer Verlag
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
_version_ 1833601983418728448

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