Working Paper: NBER ID: w2434
Authors: Elhanan Helpman
Abstract: Price controls were part of Israel's stabilization program of July 1985. Some results of the program seem to be inconsistent with competitive macroeconomic models. It is suggested that these results are consistent with an economy that has an oligopolistic market structure. The paper explores the effects of market structure on macroeconomic performance in the presence and absence of price control.
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 |
|---|---|
| Price Controls (E64) | Excess Demand (D12) |
| Price Controls (E64) | Contraction of Output (E23) |
| Excess Demand (D12) | Decrease in Employment (J63) |
| Price Controls (E64) | Decrease in Real GDP Rate (E20) |
| Price Controls (E64) | Expansion of Output (C67) |