Market Behaviour and Macroeconomic Modelling

M. ALOI Department of Economics, University of York, York A. VAN DEN BERG Department of Economics, Free University Amsterdam P. A. G. VAN BERGEIJK Netherlands Central Bank, Amsterdam D. P. BROER CPB - Netherlands Bureau for Economic Policy Analysis, The Hague W. H. BUITER Department of Economics, Cambridge University, Cambridge D. W. CARLTON Department of Economics, University of Chicago, Chicago K. B. CHURCH Department of Economics, University of Warwick, Coventry H. D. DIXON Department of Economics, University of York, York D. A. G. DRAPER CPB - Netherlands Bureau for Economic Policy Analysis, The Hague T. ELLINGSEN Department of Economics, University of Oslo, Oslo H. GARRETSEN Department of Economics, University of Nijmegen, Nijmegen S. G. GILCHRIST Department of Economics, Boston University, Boston L. DE HAAN Netherlands Central Bank, Amsterdam J. DE HAAN Department of Economics, University of Groningen, Groningen R. C. G. HAFFNER Ministry of Economic Affairs, The Hague S. HOLDEN Department of Economics, University of Oslo, Oslo A. HOUWELING CPB - Netherlands Bureau for Economic Policy Analysis, The Hague F. H. HUIZINGA CPB - Netherlands Bureau for Economic Policy Analysis, The Hague P. A. DE JONG CPB - Netherlands Bureau for Economic Policy Analysis, The Huage K. KLETZNER Department of Economics, University of California, Santa Cruz G. H. KUPER Department of Economics, University of Groningen, Groningen P. LAWLER Department of Economics, University of York, York A. NIEUWENHUIS CPB - Netherlands Bureau for Economic Policy Analysis, The Hague G. RIDDER Department of Economics, Free University, Amsterdam T. H. ROELANDT Ministry of Economic Affairs, The Hague J. VAN SINDEREN Ministry of Economic Affairs, The Hague E. STERKEN Department of Economics, University of Groningen, Groningen J. E. STURM Department of Economics, University of Groningen, Groningen H. UGLIG Centre for Economic Research, Tilburg University, Tilburg N. DE VISSER Department of Economics, Free University, Amsterdam K. F. WALLIS Department of Economics, University of Warwick, Coventry E. ZAKRAJSEK Federal Reserve Board, Washington.

• Preface Notes on the Contributors PART I: IMPERFECT COMPETITION (A) The Multiplier in an Economy with Monopolistic Output: Markets and Competitive Labour Markets; Marta Aloi, Huw Dixon and Phillip Lawler Imperfect Competition and Aggregate Price Equations; Ate Nieuwenhuis PART II: IMPERFECT COMPETITION (B) A Critical Assessment of the Role of Imperfect Competition in Macroeconomics; Dennis W. Carlton An International Comparative Analysis of the State of Competition; Robert C.G. Haffner and Peter A.G. van Bergeijk PART III: FINANCIAL MARKET IMPERFECTIONS The Importance of Credit for Macroeconomic Activity: Identification Through Heterogeneity; Simon Gilchrist and Egon Zakrajsek Investment and Debt Constraints: Evidence from Dutch Panel Data; Hans van Ees, Harry Garretsen, Leo de Haan and Elmer Sterken PART IV: LABOUR MARKET IMPERFECTIONS Sticky Consumption and Rigid Wages; Tore Ellingsen and Steinar Holden Structural Aspects of the Labour Markets of Five OECD Countries; Geert Ridder, Niels De Visser and Gerard Van den Berg PART V: SHORT-RUN RIGIDITIES Short-Run Rigidities and Long-Run Equilibrium in Large-Scale Macroeconometric Models; Keith B. Church, Peter R. Mitchell and Kenneth F. Wallis High and Low Skilled Labour in a Macroeconometric Model of the Netherlands; D.P. Broer, D.A.G. Draper, A. Houweling, F.H. Huizinga and P.A. De Jongh PART VI: INTERTEMPORAL MODELLING Uses and Limitations of Public Debt; Willem H. Buiter and Kenneth M. Kletzer Capital Income Taxation and the Sustainability of Permanent Primary Deficits; Harald Uhlig PART VIII: POLICY IMPLICATIONS Policy Implications of Endogenous Growth Models; Jarig van Sinderen and Theo J.A. Roelandt Modelling Government Investment and Economic Growth on a Macro Level: A Review; Jan-Egbert Sturm, Gerard H. Kuper and Jacob de Haan Index