Market Structure and Fiscal Policy Effectiveness
在一个内生市场结构的垄断竞争宏观模型中，财政乘数由两部分组成：传统渠道效应和市场结构变化效应，后者显著提高乘数并改善福利。
In a monopolistic competition macromodel with endogenous market structure, the fiscal multiplier is shown to consist of two components. The first depicts the response of output to a fiscal expansion through the conventional channels that disregard the role of market imperfections. The second component captures the effects of firms' market power as well as the policy‐induced change in market structure. The latter effect—which has not been taken into account in existing studies—is shown to be quite significant in raising the fiscal multiplier (even above unity) and in improving consumers' welfare when the labour market is competitive.