Working Paper
Indeterminacy and stabilization policy
Abstract: A demonstration of how an income tax schedule that exhibits a progressivity feature can ensure saddle-path stability in a one-sector, real business-cycle model with sufficient increasing returns in production, thereby shielding the economy against sunspot fluctuations.
Keywords: Economic stabilization; Business cycles;
Access Documents
File(s):
https://doi.org/10.26509/frbc-wp-199708
Description: Persistent link
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Working Papers (Old Series)
Publication Date: 1997
Number: 9708