Aggregate instability under balanced-budget consumption taxes: a re-examination

DOI10.1016/J.JET.2013.07.010MaRDI QIDQ405538zbMATH OpenOpenAlexFDO

Authors Carine Nourry, Thomas Seegmuller, Alain Venditti

Publication date 5 September 2014

Published in Journal of Economic Theory (Search for Journal in Brave)

Full work available at URL https://halshs.archives-ouvertes.fr/halshs-00633609/file/DTGREQAM2011_44.pdf

zbMATH Keywords

indeterminacyincome effectbalanced-budget ruleconsumption taxesendogenous business cyclesinfinite-horizon model

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64) Consumer behavior, demand theory (91B42)

Recommendations

• Destabilizing balanced-budget consumption taxes in multi-sector economies
• Balanced-budget consumption taxes and aggregate stability in a small open economy
• The failure of stabilization policy: balanced-budget fiscal rules in the presence of incompressible public expenditures
• Balanced-budget rules and macroeconomic (in)stability
• Sectoral composition of government spending, distortionary income taxation, and macroeconomic (in)stability

Cites work

• A cross-country empirical investigation of the aggregate production function specification
• Capital-labor substitution and equilibrium indeterminacy
• Dynamic effects of government expenditure in a finance constrained economy
• Income effects and indeterminacy in a calibrated one-sector growth model
• Indeterminacy and increasing returns
• Indeterminacy and period length under balanced budget rules
• Indeterminacy in aggregate models with small externalities: an interplay between preferences and technology
• Indeterminacy with almost constant returns to scale: capital-labor substitution matters
• Micro and macro elasticities in a life cycle model with taxes
• On the minimum degree of returns to scale in sunspot models of the business cycle.

Cited in

(13)

• Sectoral composition of government spending, distortionary income taxation, and macroeconomic (in)stability
• Non‐separable utilities and aggregate instability
• Progressive consumption tax and monetary policy in an endogenous growth model
• The failure of stabilization policy: balanced-budget fiscal rules in the presence of incompressible public expenditures
• The perils of fiscal feedback rules
• Fiscal policy, debt constraint and expectations-driven volatility
• Introduction to financial frictions and debt constraints
• Balanced-budget consumption taxes and aggregate stability in a small open economy
• Time‐varying consumption tax, productive government spending, and aggregate instability
• Factor substitution and taxation in a finance constrained economy
• Destabilizing balanced-budget consumption taxes in multi-sector economies
• Tax rate uncertainty and the sensitivity of consumption to income in an overlapping generations model
• Comparing recursive equilibrium in economies with dynamic complementarities and indeterminacy

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