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Tariff and Equilibrium Indeterminacy--A Note

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  • Zhang, Yan
  • Chen, Yan
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Abstract

We explore the equivalence between the factor income taxes (in Schmitt-Grohe and Uribe 1997) in the closed economy and the tariff in the open economy, in the sense that they share similar propagation mechanism of sunspot and fundamental shocks under a balanced-budget rule.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10044.

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Date of creation: 12 Jun 2008
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Handle: RePEc:pra:mprapa:10044

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Related research

Keywords: Sunspots; Endogenous Tariff Rate; Comovement;

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  1. Newbery, D., 2005. "Why Tax Energy? Towards a More Rational Energy Policy," Cambridge Working Papers in Economics 0508, Faculty of Economics, University of Cambridge.
  2. Zhang, Yan, 2008. "Tariff and Equilibrium Indeterminacy--(II)," MPRA Paper 10043, University Library of Munich, Germany.
  3. Zhang, Yan, 2009. "Tariff and Equilibrium Indeterminacy," MPRA Paper 13099, University Library of Munich, Germany.
  4. Aguiar-Conraria, Luis & Wen, Yi, 2004. "Foreign Trade and Equilibrium Indeterminacy," Working Papers 04-09, Cornell University, Center for Analytic Economics.
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Cited by:
  1. Zhang, Yan, 2008. "Tariff and Equilibrium Indeterminacy," MPRA Paper 11370, University Library of Munich, Germany.

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