Autori
Chirco, Alessandra
Colombo, Caterina

Titolo
Demand Elasticity and Fiscal Policy
Periodico
Rivista italiana degli economisti
Anno: 2002 - Volume: 7 - Fascicolo: 1 - Pagina iniziale: 49 - Pagina finale: 72

In this paper we study the transmission mechanism of fiscal policy based on possible changes in the elasticity of demand. These are obtained by assuming that firms face a balance of public and private demands, each characterized by different price elasticity. We show that in this set-up there exists a range of the technological conditions under which fiscal policy is expansionary, independently of the pro- or counter- cyclical nature of its impact on the desired mark-up.



SICI: 1593-8662(2002)7:1<49:DEAFP>2.0.ZU;2-S
Testo completo: http://www.mulino.it/ws/rwDirectDownload.php?doi=10.1427/7990
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