Posch, Olaf; Wälde, Klaus - Volkswirtschaftslehre-Lehrstühle, Gutenberg School of … - 2010
A model highlighting the endogeneity of both volatility and growth is presented. Volatility and growth are therefore correlated but there is no causal link from volatility to growth. This joint endogeneity is illustrated by working out the eects through which economies with dierent tax levels...