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1 avril 2019
- ISIDORE Id: 10670/1.16447b...
- hal: hal-02478346
- doi: 10.1111/ijet.12216
Ce document est lié à :
https://shs.hal.science/halshs-01934819v1
Ce document est lié à :
info:eu-repo/semantics/altIdentifier/doi/10.1111/ijet.12216
info:eu-repo/semantics/OpenAccess
Mots-clés
endogenous growth time‐varying consumption tax global indeterminacy self‐fulfilling expectation sunspot equilibriaSujets proches
Duties Fee system (Taxation) Taxation, Incidence of Tax reform Tax policy TaxesCiter ce document
Mauro Bambi et al., « Time‐varying consumption tax, productive government spending, and aggregate instability », HAL SHS (Sciences de l’Homme et de la Société), ID : 10.1111/ijet.12216
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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.
