What is the impact of surprise and anticipated policy changes when agents form expectations using adaptive learning … rather than rational expectations? We examine this issue using the standard stochastic real business cycle model with lump …-shaped response, and tend to be prominently characterized by oscillations not present under rational expectations. These fluctuations …

accounting, auditing, tax returns and consequent quagmire of all tax related cases.Salient features of this new tax system....................Taxation …

exceeds the growth rate. This is done by considering an economy in steady state where all agents hold “Barro expectations … unchanged. In this scenario, a change in the mode of taxation affects the present value of disposable income in the private … sector. This violates their Barro expectations. …

exceeds the growth rate. This is done by considering an economy in steady state where all agents hold "Barro expectations … unchanged. In this scenario, a change in the mode of taxation affects the present value of disposable income in the private … sector. This violates their Barro expectations. …

This note identifies a severe mistake in my article “Unexpected Consequences of Ricardian Expectations” that appeard in …

considering an economy in steady state where all agents hold Barro expectations: they believe that government debt must … mode of taxation affects the present value of disposable income in the private sector. This violates their Barro … expectations. …

government spending, a change in taxation does not alter the set of feasible life-time consumption plans of the households and … the very expectations the thesis proposes ("Ricardian expectations"), it is shown that these expectations are invalidated …