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The Comparative Dynamics of Tax Changes: A Non-steady State Analysis

Robin Boadway

Working Paper from Economics Department, Queen's University

Abstract: The dynamic path of accumulation in a neo-classical economy can be described by a differential equation in the time rate of change of the per capita capital stock. In the theory of differential equations there is a technique for examining the change of the solution of a differential equation from a differential change in a parameter. This technique is applied to the effect of tax changes on the path of accumulation and, as a consequence, on factor prices. We therefore have an analysis of tax incidence in a dynamic economy out of the steady state.

Pages: 36
Date: 1976
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:216

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