Autori:
Christodoulakis, Nicos ,
Weale, Martin Titolo:
Imperfect competition in an open economyPeriodico:
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papersAnno:
1990 - Fascicolo:
29 - Pagina iniziale:
1 - Pagina finale:
32This paper describes a simulation model of a small open economy, which includes a careful specification of imperfect competition in the goods market and the possibility of increasing returns to scale of goods production. The response of the model to shocks is investigated on the assumption that the policy authorities seek to control inflation by means of a fixed nominal exchange rate target and to maintain zero net external debt by means of a simple fiscal policy rule. The influence of economies of scale on the pattern of response to shocks is investigated.
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