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.
|Number of pages||7|
|Publication status||Published - 2000|
Bibliographical note10.1016/S0165-1765(00)00221-4 Article 0165-1765
- Monopolistic competition Cost asymmetries Fiscal policy Market structure