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authority solves an optimal policy problem under commitment at the zero-lower bound. FG derives from two sources: 1. from … additively to the standard Taylor rule. In the case where optimal policy reflects debt sustainability concerns (satisfies the … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and …
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Inflation and earnings growth can push some tax payers into higher brackets in the absence of inflation-indexed schedules. Moreover, inflation may affect the composition of individuals’ income sources. As a result, depending on the relative tax burden of labor and capital, inflation may...
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Does trade improve institutions and contribute to long run growth? I develop a theory of trade, in which trade liberalization provides incentive to change institutions in two ways. On the one hand, trade leads to specialization according to comparative advantage, expanding the industries that do...
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Among the essential resources of a particular area, the land resources have an important role in the economy, due to their economic importance at local level, in terms of its capitalization, and on the other hand, from ecological perspective, i.e. in terms of environment quality and of ensuring...
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economics. We use a novel data set containing all original research papers (N = 583) that exclusively used laboratory … experiments for data generation and were published in the American Economic Review, Experimental Economics or the Journal of the …
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