Primary inputs supply, government size and welfare in the presence of monopolistic competition

Sajid Anwar

Philippine Review of Economics, 2004, vol. 41, issue 2, 81-91

Abstract: The paper considers the impact of exogenous changes in the supply of primary inputs on government size and welfare in the presence of monopolistic competition. By making use of a simple general equilibrium model, this paper shows that an increase in the supply of labor increases (decreases) the relative size of government if the share of capital in the final good sector is larger (smaller) than the share of capital in the public good sector. An increase in the supply of capital decreases the relative size of government only if the share of capital in the final good sector is equal to (or larger) than the share of capital in the public good sector. An increase in the overall size of the country decreases the relative government size. In addition, an increase in the supply of both capital and labor increases welfare.

Keywords: government size; monopolistic competition; primary inputs (search for similar items in EconPapers)
JEL-codes: F20 H19 H41 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations:

Downloads: (external link)
http://pre.econ.upd.edu.ph/index.php/pre/article/view/173/579 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:phs:prejrn:v:41:y:2004:i:2:p:81-91

Access Statistics for this article

More articles in Philippine Review of Economics from University of the Philippines School of Economics and Philippine Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by HR Rabe ().