Journal Article

Tax structure, optimal fiscal policy, and the business cycle


Abstract: The development of a real business cycle model in which government fiscal variables such as tax rates and public expenditures are endogenous. The authors characterize the \\"optimal\\" behavior of these policy variables over the business cycle and relate this behavior to movements in private-sector variables like output, consumption, labor hours, and investment.

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Review

Publication Date: 1994

Volume: 30

Issue: Q IV

Pages: 2-14