CHIRCO, Alessandra; COLOMBO, Caterina - In: Rivista Italiana degli Economisti 7 (2002) 1, pp. 49-72
In this paper we study the transmission mechanism of fiscal policy based on possible changes in the elasticity of demand. These are obtained by assuming that firms face a balance of public and private demands, each characterized by different price elasticity. We show that in this set-up there...