Skip to main content
padlock icon - secure page this page is secure

Intertemporal Preferences, Imperfect Competition and Effective Fiscal Intervention

Buy Article:

$43.00 + tax (Refund Policy)

This paper illustrates that, when goods market imperfections cause the equilibrium level of output to be below its corresponding Walrasian level, an exogenous demand stimulus can raise employment and output if households’ preferences exhibit some substitution between current leisure and future consumption. The elasticity of substitution is shown to provide a channel for an effective and stable fiscal intervention, enabling the government to formulate a combined tax- and borrowing-based fiscal policy which can raise the level of output without having any crowding-out consequences for the private sector.
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Document Type: Original Article

Affiliations: University of Dundee

Publication date: 01 March 1998

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more