Fiscal Policy under Indeterminacy and Tax Evasion
This paper shows under indeterminacy and tax evasion, an increase in corporate, labor or income tax rates pushes the economy into an expansionary pattern. These effects are reversed when the steady state is saddle-path stable.
|Date of creation:||30 May 2005|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.econ.au.dk/afn/|
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