Federal Reserve Bank of Cleveland
Working Papers (Old Series)
Indeterminacy and stabilization policy
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.
Cite this item
Jang-Ting Guo & Kevin J. Lansing, Indeterminacy and stabilization policy, Federal Reserve Bank of Cleveland, Working Papers (Old Series) 9708, 1997.
Keywords: Economic stabilization ; Business cycles
This item with handle RePEc:fip:fedcwp:9708
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