Market structure, cost asymmetries and fiscal policy effectiveness

Hassan Molana, Catia Montagna

    Research output: Contribution to journalArticle

    6 Citations (Scopus)

    Abstract

    Imperfectly competitive macroeconomic models typically assume a symmetric equilibrium with identical firms, despite the fact that most industries are characterised by substantial degrees of firm heterogeneity. We examine how inter-firm efficiency gaps affect fiscal policy effectiveness under monopolistic competition.
    Original languageEnglish
    Pages (from-to)101-107
    JournalEconomics Letters
    Volume68
    Issue number1
    Early online date2 May 2000
    DOIs
    Publication statusPublished - Jul 2000

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    Keywords

    • Monopolistic competition
    • Cost asymmetries
    • Fiscal policy
    • Market structure

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