power shifts. Using a rational-expectations model, we show cycles result from governments' inability to commit to future … investments, which in turn prompts it to increase taxes next period. This induces low investment thus low future taxes, and so on …

power shifts. Using a rational-expectations model, we show cycles result from governments' inability to commit to future … investments, which in turn prompts it to increase taxes next period. This induces low investment thus low future taxes, and so on …

power shifts. Using a rational-expectations model, we show cycles result from governments' inability to commit to future … investments, which in turn prompts it to increase taxes next period. This induces low investment thus low future taxes, and so on …

structural breaks in the dynamics and the volatility of the real output process in Germany can be detected. We report evidence … that output volatility has declined in Germany. Yet, this decline in output volatility is not as clear-cut as it is in the … in Germany reflects good economic and monetary policy or merely ?good luck?. …