Search

Skip to main content Accessibility help

Home
Search

Only show content I have access to (0)

Articles (1)

Over 3 years (1)

From year:

To year:

Apply

aggregate demand externalities

Recherches Économiques de Louvain/ Louvain Economic Review (1)

View selected items
Save to my bookmarks
Export citations
Download PDF (zip)
Save to Kindle
Save to Dropbox
Save to Google Drive
Save content to
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to .

To save content items to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Please be advised that item(s) you selected are not available.
You are about to save
Your Kindle email address

Please provide your Kindle email.

@free.kindle.com @kindle.com (service fees apply)

By using this service, you agree that you will only keep content for personal use, and will not openly distribute them via Dropbox, Google Drive or other file sharing services

1 results

The Price Index Effect and Macroeconomic Inefficiency
Corrado Benassi, Alessandra Chirco, Caterina Colombo
Journal:

Recherches Économiques de Louvain/ Louvain Economic Review / Volume 68 / Issue 3 / 2002

Published online by Cambridge University Press:

17 August 2016, pp. 385-394

Print publication:

2002
- Article
- - Get access
    
    Check if you have access via personal or institutional login
    
    Log in Register
- Export citation
In the Dixit-Stiglitz model of monopolistic competition the effects of individual pricing decisions on the aggregate price index are neglected. This paper studies the implications of this approximation in terms of the efficiency of macroeconomic equilibria. We show that allowing for the price-index effect, makes the degree of inefficiency positively correlated with the number of agents; it also reduces the scope for New Keynesian outcomes, such as price rigidity and multiple equilibria.