Edge, Rochelle M.; Rudd, Jeremy B. - In: Journal of Monetary Economics 58 (2011) 6, pp. 564-577
A new-Keynesian model with a nominal tax system is developed and used to study the macroeconomic effects of temporary tax-based investment incentives. Two claims regarding the effects of these incentives are examined: first that they are overstated in partial-equilibrium frameworks; and second...