Arbeitspapier
Progressive taxation and (in)stability in an endogenous growth model with human capital accumulation
We show that in an endogenous growth model with human accumulation calibrated to Bulgarian data under the progressive taxation regime (1993-2007), the artificial economy exhibits equilibrium indeterminacy. These results are in line with the recent findings in Chen and Guo (2015) in the context of an AK endogenous growth model. Also, the findings are in contrast to Guo and Lansing (1988) who argue that progressive taxation works as an automatic stabilizer. Progressive taxation in our setup leads to equilibrium indeterminacy. This indeterminacy result could explain, at least partially, why the economic performance under the progressive taxation regime in Bulgaria was not impressive.
- Language
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Englisch
- Bibliographic citation
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Series: EERI Research Paper Series ; No. 18/2016
- Classification
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Wirtschaft
Business Fluctuations; Cycles
Fiscal Policy
One, Two, and Multisector Growth Models
- Subject
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Progressive Income Taxation
Endogenous growth
Human capital
Equilibrium (In)determinacy
- Event
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Geistige Schöpfung
- (who)
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Vasilev, Aleksandar
- Event
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Veröffentlichung
- (who)
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Economics and Econometrics Research Institute (EERI)
- (where)
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Brussels
- (when)
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2016
- Handle
- Last update
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03.09.2029, 7:44 PM CEST
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Vasilev, Aleksandar
- Economics and Econometrics Research Institute (EERI)
Time of origin
- 2016
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