淡江大學機構典藏:Item 987654321/24788
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    Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/24788


    Title: Productive Public Expenditure and Imperfect Competition with Endogenous Price Markup
    Authors: Chen, Jhy-hwa;Shieh, Jhy-yuan;Lai, Ching-chong
    Contributors: 淡江大學經濟學系
    Keywords: JEL classification: E12;E62;H54
    Date: 2005-07
    Issue Date: 2009-11-30 18:37:04 (UTC+8)
    Publisher: Oxford University Press
    Abstract: This paper incorporates the productivity role of government expenditure into the imperfectly competitive macroeconomic model and re-examines the important findings on the fiscal multiplier proposed by Dixon (1987) , Mankiw (1988) , and Startz (1989) . Generally speaking, we find that the classical results of imperfect competition models should be modified when the productivity role of government expenditure is taken into account. The short-run fiscal multiplier may be positive or negative, depending crucially upon whether the public infrastructure and the private input are technical substitutes or complements for each other. The short-run fiscal multiplier does not necessarily exceed the corresponding long-run multiplier. If public expenditure and private inputs are technically substitutes, the long-run fiscal multiplier may exceed the short-run fiscal multiplier. Additionally, in the long-term analysis, the dynamics of entry is investigated. In response to a change in government policy, the novel transitions of output and entry provide us with important policy implications.
    Relation: Oxford economic papers 57(3), p.522-544
    DOI: 10.1093/oep/gpi017
    Appears in Collections:[Graduate Institute & Department of International Business] Journal Article
    [Graduate Institute & Department of Economics] Journal Article

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