Costa, Luís F.2010-12-222010-12-222001Costa, Luís F.. 2001. "Endogenous markups and fiscal policy". Instituto Superior de Economia e Gestão - DE Working papers nº 6-2001/DE0874-4548http://hdl.handle.net/10400.5/2743This note analyses a simple imperfectly competitive general equilibrium model where the entry mechanism generates an endogenous markup. In this second-best world fiscal policy is more effective than in Walrasian or in fixed-markup monopolistic competition models, as it produces efficiency gains through entry.engEndogenous MarkupsEntryMultiplierFiscal Policyworking paper