Artikel
Progressive taxation and (in)stability in an exogenous growth model with non-market ("home") production
We show that in a exogenous growth model with non-market ("home") sector calibrated to Bulgarian data under the progressive taxation regime (1993-2007), the economy exhibits equilibrium indeterminacy due to the presence of non-market production. These results are in line with the findings in Benhabib and Farmer (1994, 1996) and Farmer (1999). Also, the findings in this paper are in contrast to Guo and Lansing (1988) who argue that progressive taxation works as an automatic stabilizer. Under the flat tax regime (2008-16), the economy calibrated to Bulgarian data displays saddle-path stability. The decrease in the average effective tax rate addresses the indeterminacy issue and eliminates the "stable focus" dynamics.
- Sprache
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Englisch
- Erschienen in
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Journal: Journal of Economics and Econometrics ; ISSN: 2032-9660 ; Year: 2019 ; Issue: Forthcoming ; Brussels: The Economics and Econometrics Research Institute
- Klassifikation
-
Wirtschaft
Informal Labor Markets
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
One, Two, and Multisector Growth Models
- Thema
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Progressive taxation
Non-market sector
Home production
Equilibrium (In)determinacy
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Vasilev, Aleksandar
- Ereignis
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Veröffentlichung
- (wer)
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The Economics and Econometrics Research Institute
ZBW – Leibniz Information Centre for Economics
- (wo)
-
Brussels
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Artikel
Beteiligte
- Vasilev, Aleksandar
- The Economics and Econometrics Research Institute
- ZBW – Leibniz Information Centre for Economics
Entstanden
- 2019
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Solving Hayashi and Prescott (2007) "The 1990s: Japan's Lost Decade"(extended with an exogenous population growth and labour-augmenting technical progress) using a Linear-Quadratic Approximation as in Ljungqvist and Sargent (2004)
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