Business Cycles and Fiscal Policy in an Open Economy
T.M. Andersen and
Steinar Holden ()
No 12/1998, Memorandum from Oslo University, Department of Economics
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 (search for similar items in EconPapers)
JEL-codes: E32 E63 F41 (search for similar items in EconPapers)
Pages: 31 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://www.sv.uio.no/econ/english/research/unpubl ... 998/Memo-12-1998.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:1998_012
Access Statistics for this paper
More papers in Memorandum from Oslo University, Department of Economics Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Mari Strønstad Øverås ().