The Economic Effects of Production Taxes in a Stochastic Growth Model

Michael Dotsey

American Economic Review, 1990, vol. 80, issue 5, 1168-82

Abstract: This paper analyzes the effects of stochastic taxes on production in simple stochastic growth model. In so doing, the paper explicitly examines the importance of uncertainty on the decisions of individual agents. This importance is emphasized by comparing economic outcome to various realizations of tax rates under uncertainty and perfect foresight. Copyright 1990 by American Economic Association.

Date: 1990
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