Sep 21, 2004

Articles in journals

Costa, L.

72

16

This article analyses a simple imperfectly competitive general equilibrium model where the entry mechanism generates an endogenous markup. In this second-best world fiscal policy is more effective than in Walrasian or in fixed-markup monopolistic competition models, as it produces efficiency gains through entry.

Endogenous Markups,Entry,Multiplier,Fiscal Policy