We use a version of the Fuhrer-Moore model to study the effects of expectations and central bank credibility on the economy’s dynamic transition path during a disinflation.
It has been shown that a one-sector real business cycle model with sufficient increasing returns in production may possess an indeterminate steady state that can be exploited to generate business cycles.
This paper develops a quantitative general equilibrium model to assess the growth effects of adopting a flat tax plan similar to the one proposed by Hall and Rabushka (1985, 1995).
This paper shows that the optimal steady-state tax on capital income in a neoclassical growth model can be positive, negative, or zero, depending crucially on the level of monopoly profits and the degree to which profits can be taxed.
This paper develops a dynamic general-equilibrium model with productive public capital to help account for differences in the business cycle characteristics of public- versus private-sector expenditures in postwar U.S. data.
This paper argues that variations of extant general-equilibrium monetary models are capable of generating real-time economic forecasts comparable in accuracy to those generated under the standard Federal Reserve Board staff methodology.
An analysis of various schemes for simplifying the U.S. tax system, which finds that a uniform tax system performs almost as well as a system with separate taxes on labor and capital incomes, provided that a depreciation allowance is maintained.
A demonstration that the assumed structure of taxation can have dramatic effects on economic welfare and on the stability of the steady state in a dynamic general-equilibrium model of optimal fiscal policy.
Optimal program of distortionary taxes, money growth, and borrowing to finance a stream of expenditures is computed in a monetary real business cycle model for which distribution issues between rich and poor play fundamental role in policy decisions.
Consider the following investment scenario. You tum over 10 percent of your salary each year to an investment manager who pools your contributions with those of others to form something that looks like a mutual fund.