Progressive taxation as an automatic destabilizer under endogenous growth
It has been shown that in an otherwise standard one-sector real business cycle model with an indeterminate steady state under laissez faire, sufficiently progressive income taxation may stabilize the economy against aggregate fluctuations caused by agents’ animal spirits. We show that this previous...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Springer-Verlag Wien
2019
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| Subjects: | |
| Online Access: | View Fulltext in Publisher |