Macroeconomic Effects of Price Controls: The Role of Market Structure
Price controls were part of Israel's stabilization program of July 1985. Some results of the program seem to be inconsistent with competitive macroeconomic models. It is suggested that these results are consistent with an economy that has an oligopolistic market structure. The paper explores the effects of market structure on macroeconomic performance in the presence and absence of price control.
Published: Economic Journal, Vol. 98, No. 391, pp. 340-354, (June 1988).