Time-varying Consumption Tax, Productive Government Spending, and Aggregate Instability - HAL-SHS - Sciences de l'Homme et de la Société Accéder directement au contenu
Pré-Publication, Document De Travail Année : 2018

Time-varying Consumption Tax, Productive Government Spending, and Aggregate Instability

Résumé

In this paper we investigate if government balanced-budget rules together with endogenous taxation may lead to aggregate instability in an endogenous growth framework. After highlighting the differences with the exogenous growth framework, we prove that under counter-cyclical consumption taxes, while there exists a unique balanced growth path, sunspot equilibria based on self-fulfilling expectations occur through a form of global indeterminacy. In addition, we argue that this result is empirically plausible for a large set of OECD countries and that it may also emerge with endogenous income taxes.
Fichier principal
Vignette du fichier
WP 2018 - Nr 29.pdf (1.05 Mo) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

halshs-01934819 , version 1 (26-11-2018)

Identifiants

  • HAL Id : halshs-01934819 , version 1

Citer

Mauro Bambi, Alain Venditti. Time-varying Consumption Tax, Productive Government Spending, and Aggregate Instability. 2018. ⟨halshs-01934819⟩

Relations

73 Consultations
254 Téléchargements

Partager

Gmail Facebook X LinkedIn More