Costa, Luís F.2018-05-302018-05-302006-05Costa, Luís F. (2006). "Entry and fiscal policy effectiveness in a small open economy within a Monetary Union". Portuguese Economic Journal, 5(1):45-651617-982X (print)1617-9838 (online)http://hdl.handle.net/10400.5/15524In this article I develop an imperfectly competitive dynamic general equilibrium model for a small open economy integrated in a monetary union. Here, the type of entry in the non-traded goods’ sector affects fiscal policy effectiveness. Fiscal policy effectiveness is enlarged when aggregate demand stimuli increase intra-industrial competition (case I). This is due to the counter-cyclical mark-up mechanism generated by entry. Such a mechanism is absent in the usual monopolistic competition where entry only has a sharing effect (case II).engSmall EconomyEntryFiscal PolicyEndogenous Mark-Upsjournal article10.1007/s10258-006-0003-8