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Dynamic optimal fiscal and monetary policy in a business cycle model with income redistribution

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  • Kevin J. Lansing

Abstract

An estimation of an optimal program of distortionary taxes, money growth, and borrowing to finance a stream of expenditures based on a real business cycle model in which distribution issues between the rich and poor play a fundamental role in policy decisions.

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Bibliographic Info

Paper provided by Federal Reserve Bank of Cleveland in its series Working Paper with number 9308.

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Date of creation: 1993
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Handle: RePEc:fip:fedcwp:9308

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Keywords: Business cycles ; Monetary policy ; Income distribution;

References

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  37. Turnovsky, Stephen J. & Brock, William A., 1980. "Time consistency and optimal government policies in perfect foresight equilibrium," Journal of Public Economics, Elsevier, Elsevier, vol. 13(2), pages 183-212, April.
  38. Joines, Douglas H, 1981. "Estimates of Effective Marginal Tax Rates on Factor Incomes," The Journal of Business, University of Chicago Press, University of Chicago Press, vol. 54(2), pages 191-226, April.
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  40. Easterly, William & Rebelo, Sérgio, 1994. "Fiscal Policy and Economic Growth: An Empirical Investigation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 885, C.E.P.R. Discussion Papers.
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