Federal Reserve Bank of Cleveland
Working Papers (Old Series)
Optimal fiscal policy when public capital is productive: a business- cycle perspective
An examination of the business cycle implications of productive public capital in a two-sector, dynamic general-equilibrium model with optimal fiscal policy. In simulations, public investment and public consumption move procyclically, and the capital tax is more variable than the labor tax--features also observed in annual U.S. data.
Cite this item
Kevin J. Lansing, Optimal fiscal policy when public capital is productive: a business- cycle perspective, Federal Reserve Bank of Cleveland, Working Papers (Old Series) 9406, 1994.
Keywords: Capital ; Fiscal policy
This item with handle RePEc:fip:fedcwp:9406
is also listed on EconPapers
For corrections, contact 4D Library ()