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    Title: Fiscal Stimulus in a Simple Macroeconomic Model of Monopolistic Competition with Firm Heterogeneity
    Authors: 賴廷緯
    Lai, Ting-wei
    張振維
    Chang, Cheng-wei
    賴景昌
    Lai, Ching-Chong
    Contributors: 經濟系
    Keywords: Monopolistic competition;Firm heterogeneity;Fiscal policy
    Date: 2019-06
    Issue Date: 2020-05-25 15:39:49 (UTC+8)
    Abstract: This paper studies the impact of a fiscal stimulus by setting up a simple monopolistic competition model with firm heterogeneity in productivity. Several main results are derived from the general equilibrium analysis. First, a rise in firm heterogeneity per se leads to decreases in aggregate output and aggregate consumption, but raises the aggregate price level when the variety-enhancing effect is sufficiently strong. Second, a fiscal expansion will bring about a positive effect on aggregate consumption, provided that the variety-enhancing effect is relatively strong or the extent of firm heterogeneity is relatively small. Finally, a fiscal expansion may raise social welfare, depending on the size of the variety-enhancing effect and the extent of firm heterogeneity.
    Relation: Japanese Economic Review, Vol.., No.., pp..
    Data Type: 期刊論文
    DOI 連結: https://doi.org/10.1007/s42973-019-00025-8
    DOI: 10.1007/s42973-019-00025-8
    Appears in Collections:[經濟學系] 期刊論文

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