Fiscal policy and fluctuations in a monetary model of growth

Stefano Bosi () and Francesco Magris
Additional contact information
Stefano Bosi: EPEE - Centre d'Etudes des Politiques Economiques - UEVE - Université d'Évry-Val-d'Essonne

Post-Print from HAL

Abstract: We consider an infinite horizon economy with representative agent, aggregate externalities on capital/labor ratio and liquidity constraint on income taxes. We show that the stationary rate of growth can be indeterminate for a wide range of elasticities of intertemporal substitution in consumption. Such a range is bounded from below by a value undergoing a saddle node bifurcation and from above by a value giving raise to a flip bifurcation. It follows that both multiple stationary rates of growth and cycles may emerge. In addition, we carry out a welfare analysis in terms of the optimal level of taxation, since public spending affects consumer's utility, although in a separable way. © 2005 University of Venice. Published by Elsevier Ltd. All rights reserved.

Date: 2005-06
References: Add references at CitEc
Citations:

Published in Research in Economics, 2005, 59 (2), pp.110--118. ⟨10.1016/j.rie.2005.04.007⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Fiscal policy and fluctuations in a monetary model of growth (2005)
Working Paper: Fiscal Policy and Fluctuations in a Monetary Model of Growth (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02877997

DOI: 10.1016/j.rie.2005.04.007

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().