Intro -- Contents -- I. INTRODUCTION -- II. THE BUILDING BLOCKS -- III. LEVEL AND VOLATILITY OF MACROECONOMIC OUTCOMES -- IV. MAGNITUDE AND VOLATILITY OF SHOCKS -- V. MACROECONOMIC POLICY VOLATILITY -- VI. STRUCTURAL POLICY VOLATILITY AND REFORM REVERSALS -- VII. CONSTRAINTS FACED BY...

This paper examines the role of relative prices in economic growth and the possibility that relative prices are (or can be) partly determined by tax policy. In the opening section, the paper links relative prices to tax policy. Using an extension to a standard model of economic growth, it...