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Ludovic JULIEN
''Market power, the multiplier and economic policy under oligopolistic competition''
( 2008, Vol. 4 No.29 )
In this note, we consider a multisector macroeconomic model under oligopolistic competition. We analyze the effect of an increase of the number of sectors on equilibrium price and on allocations, when the number of oligopolits of each type is constant. We also show that a tax policy has more impact on aggregate activity when the economy has many sectors. Additionally, the tax multiplier is higher than the expenditure multiplier.
Keywords: strategic interactions
JEL: D4 - Market Structure and Pricing: General
Manuscript Received : Oct 22 2008 Manuscript Accepted : Oct 24 2008

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