The Role of Fiscal Policy in an Incomplete Markets Framework

S-Tier
Journal: Review of Economic Studies
Year: 1995
Volume: 62
Issue: 3
Pages: 449-468

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A general-equilibrium model is developed to highlight the link between neo-Keynesian models of unemployment and recent results on the constrained sub-optimality of competitive economies with incomplete asset markets. Although the model deviates from the Arrow-Debreu paradigm only by the absence of some contingent claims, the competitive equilibrium exhibits under-employment and balanced-budget fiscal policies have Keynesian effects which are Pareto improving.

Technical Details

RePEc Handle
repec:oup:restud:v:62:y:1995:i:3:p:449-468.
Journal Field
General
Author Count
1
Added to Database
2026-01-29