New Keynesian Macreconomics. Dixon was one of the first economists to examine the effect of imperfect competition on the effectiveness of fiscal policy in his paper A simple model of imperfect competition with Walrasian features. This is an idea that was much explored in many other papers by him  and more recently. This paper was the first to demonstrate in a simple general equilibrium model that the fiscal multiplier could be increasing with the degree of imperfect competition in the output market. The reason for this is that imperfect competition in the output market tends to reduce the real wage, leading to the household substituting away from consumption towards leisure. When government spending is increased, the corresponding increase in lump-sum taxation causes both leisure and consumption decrease (assuming that they are both a normal good). The greater the degree of imperfect competition in the output market, the lower the real wage and hence the more the reduction falls on leisure (i.e. households work more) and less on consumption. Hence the fiscal multiplier is less than one, but increasing in the degree of imperfect competition in the output market.
^Dixon, Huw; Rankin, Neil (1994). "Imperfect Competition and Macroeconomics: A Survey". Oxford Economic Papers. 46 (2): 171–199. doi:10.1093/oxfordjournals.oep.a042122. JSTOR 2663646. Retrieved 31 October 2021 – via JSTOR.
^"The Competitive Outcome as the Equilibrium in an Edgeworthian Price-Quantity Model – The Economic Journal Vol. 102 No. 411 March 1992". The Economic Journal. 102 (411): 301. 1992. ISSN 0013-0133. JSTOR 2234515. Retrieved 31 October 2021.
^"The evolution of consistent conjectures – Journal of Economic Behavior and Organization, Volume 51, Number 4, August 2003, pp. 523–536(14)". Ingentaconnect.com. 1 August 2003. Retrieved 10 March 2012.
^"Huw" is a Welsh spelling of the English name "Hugh" and is pronounced /hju:/.
^"Cardiff Business School – Huw D Dixon". Caerdydd.ac.uk. Retrieved 10 March 2012.[permanent dead link]
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