Working Paper: NBER ID: w2386
Authors: N. Gregory Mankiw
Abstract: This paper presents a simple general equilibrium model in which the only non-Walrasian feature is imperfect competition in the goods market. The model is shown to exhibit various Keynesian characteristics. In particular, as competition in the goods market becomes less perfect, the fiscal policy multipliers approach the values implied by the textbook Keynesian cross.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Imperfect competition (L13) | Fiscal policy multipliers (E62) |
| Expansionary fiscal policy (E62) | Aggregate expenditure (E20) |
| Aggregate expenditure (E20) | Profits (D33) |
| Profits (D33) | Expenditure (H50) |
| Balanced budget multiplier (E62) | Economic outcomes (F69) |
| Tax multiplier (H29) | Economic activity (E29) |
| Imperfect competition (L13) | Balanced budget multiplier (E62) |
| Imperfect competition (L13) | Tax multiplier (H29) |