Macroeconomics with Endogenous Markups and Optimal Taxation.

I augment a flexible price dynamic general equilibrium model with any symmetric intratemporal preferences over a variety of goods supplied under monopolistic, Bertrand, or Cournot competition to derive implications for business cycle and market inefficiencies. Endogenous markups can magnify the impa...

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Detalles Bibliográficos
Publicado en:Southern Economic Journal Vol. 85; no. 2; pp. 378 - 407
Autor principal: Etro, Federico
Formato: Artículo
Publicado: Wiley-Blackwell Oct2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Oct2018
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        133013155
        10.1002/soej.12305
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        atl: Macroeconomics with Endogenous Markups and Optimal Taxation.
      aug:
        au: Etro, Federico
        affil: University of Florence and Charles River Associates, 8 Finsbury Circle, EC2M7/EA, London UK
      su:
        Economic equilibrium
        Consumer goods
        Labor supply
        Consumption (Economics)
        Fiscal policy
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        subj:
          Economic equilibrium
          Consumer goods
          Labor supply
          Consumption (Economics)
          Fiscal policy
          All Other Consumer Goods Rental
          Public Finance Activities
          Temporary Help Services
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        E1
        E2
        E3
        E1
        E2
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      ab: I augment a flexible price dynamic general equilibrium model with any symmetric intratemporal preferences over a variety of goods supplied under monopolistic, Bertrand, or Cournot competition to derive implications for business cycle and market inefficiencies. Endogenous markups can magnify the impact of shocks on consumption and labor supply through intertemporal substitution mechanisms, and the optimal fiscal policy requires a variable labor income subsidy and a capital income tax that converges to zero in the long run. With an endogenous number of goods and strategic interactions, entry also affects markups and the optimal fiscal policy requires also a tax on profits. I characterize equilibrium and efficient market structures and derive optimal tax rules for a variety of preferences, including a new type of general additive preferences that nest direct, indirect, implicit, and homothetic additivity.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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