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General equilibrium, welfare and policy when firms have market power

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dc.contributor.authorMoreno, Diego
dc.contributor.authorPetrakis, Emmanuel
dc.contributor.editorUniversidad Carlos III de Madrid. Departamento de Economíaes
dc.contributor.funderAgencia Estatal de Investigación (España)es
dc.date.accessioned2024-01-25T20:46:58Z
dc.date.available2024-01-25T20:46:58Z
dc.date.issued2024-01-25
dc.description.abstractWe consider a simple private goods market economy and show that when firms have market power the equilibrium real wage, employment, real output, and labor share are less than under perfect competition. Contrary to common wisdom market concentration may have non-monotonic general equilibrium effects: the equilibrium allocation of a monopolistic economy may Pareto dominate that of an oligopolistic economy. Corporate taxes provide an appropriate instrument to pursue distributional objectives since, unlike taxes on labor income, they do not create additional deadweight losses. An appropriate minimum real wage improves efficiency and increases the labor share in a monopolistic economy, whereas in an oligopolistic economy its efficiency effects are uncertain due the existence of multiple equilibria.en
dc.description.sponsorshiphe authors acknowledge the financial support of the MCIN (Spain), grants MCIN/AEI/10.13039/501100011033-CEX2021-001181-M and PID2022-142442OB-I00.en
dc.identifier.issn2340-5031
dc.identifier.urihttps://hdl.handle.net/10016/39547
dc.identifier.uxxiDT/0000002105es
dc.language.isoenges
dc.relation.ispartofseriesWorking paper. Economicsen
dc.relation.ispartofseries24-02
dc.relation.projectIDGobierno de España. PID2022-142442OB-I00es
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/*
dc.subject.ecienciaEconomíaes
dc.subject.jelD4
dc.subject.jelD5
dc.subject.jelD6
dc.subject.jelL1
dc.subject.jelL4
dc.subject.otherGeneral Equilibriumen
dc.subject.otherMarket Poweren
dc.subject.otherOligopolyen
dc.subject.otherMonopolyen
dc.subject.otherIncome Distributiones
dc.subject.otherMinimum Wage Policyen
dc.titleGeneral equilibrium, welfare and policy when firms have market poweren
dc.typeworking paperen
dspace.entity.typePublication
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