Scandinavian Working Papers in Economics
Memorandum,
Oslo University, Department of Economics
No 12/1998: Business Cycles and Fiscal Policy in an Open Economy
T.M. Andersen and S. Holden
Abstract: Do business cycle fluctuations leave a role and a welfare case for an active stabilization policy by means of fiscal policy instruments? We address this issue in a two-sector open economy model with price-taking firms and imperfect competition in the labour market. Fiscal policies are shown to affect the equilibrium distribution of prices and hence output in the case of both supply (productivity) and demand (preferences) shocks.
Keywords: BUSINESS CYCLES; FISCAL POLICY; DEMAND; SUPPLY
31 pages, 1998
Full text files
Memo-12-1998.pdf
Questions (including download problems) about the papers in this series should be directed to Mari Strønstad Øverås ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:osloec:1998_012This page generated on 2024-09-13 22:16:44.