Hevia, Constantino; Nicolini, Juan Pablo - 2009
recession? The key di�erence with
the literature is the joint analysis of monetary and �scal policy with distortionary taxation … substituted by consumption taxes. In addition, since taxation
of dividends is equivalent to lump-sum taxes, any optimal policy …, full taxation of dividends imply that the pricing and production decisions of the �rms
are indeterminate. It is convenient …