Mignot, Sarah; Tramontana, Fabio; Westerhoff, Frank - In: Decisions in Economics and Finance 44 (2021) 2, pp. 641-667
Based on the seminal asset-pricing model by Brock and Hommes (J Econ Dyn Control 22:1235–1274, 1998), we analytically show that higher wealth taxes increase the risky asset’s fundamental value, enlarge its local stability domain, may prevent the birth of nonfundamental steady states and, if...
