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Persistent link: https://www.econbiz.de/10005205169
This paper systematically examines the interrelations between a progressive income tax schedule and macroeconomic (in)stability in an otherwise standard one-sector real business model with productive government spending. We analytically show that the economy exhibits indeterminacy and sunspots...
Persistent link: https://www.econbiz.de/10010636437
This paper examines the quantitative relationship between the elasticity of capital-labor substitution in production and the conditions needed for equilibrium indeterminacy (and belief-driven fluctuations) in a one-sector growth model. With variable capital utilization, the substitution...
Persistent link: https://www.econbiz.de/10008493162
Persistent link: https://www.econbiz.de/10005107158
We show that in a one-sector monetary endogenous growth model under real interest rate targeting, the local stability properties of the economy's balanced growth path depend crucially on the exact formulation of the cash-in-advance constraint and the degree of productive externalities. In...
Persistent link: https://www.econbiz.de/10005041927