Fanti, Luciano; Manfredi, Piero - In: Public Finance = Finances publiques 53 (1998) 3-4, pp. 312-30
The paper investigates the role of progressive income taxation in the frame of the basic multiplier-accelerator model in continuous time. It is shown that, while proportional taxation is, as common wisdom believes, always stabilizing, in the case of non-linear progressive taxation, an increase...