Number of the records: 1
One sector models, indeterminacy, and productive public spending
- 1.
SYSNO ASEP 0307978 Document Type J - Journal Article R&D Document Type The record was not marked in the RIV Subsidiary J Ostatní články Title One sector models, indeterminacy, and productive public spending Title Jednosektorové modely, neurčitost a produktivní veřejné výdaje Author(s) Slobodyan, Sergey (NHU-C) RID Source Title CERGE-EI Working Paper Series - ISSN 1211-3298
-, č. 293 (2006), s. 1-24Number of pages 23 s. Publication form www - www Language eng - English Country CZ - Czech Republic Keywords indeterminacy ; absolute instability ; productive public spending Subject RIV AH - Economics CEZ MSM0021620846 - NHU-C Annotation This paper studies the influence of different modelling assumptions on the determinacy of the steady state in one-sector models of economic growth with externalities in the production function. We show that productive public spending subject to congestion, combined with variable capital utilization, can lead to indeterminacy at very low degrees of social increasing returns to scale. We perform a calibration of the model to the tax regimes observed in the USA. We shed some light on the conflicting effects of progressive taxation on the steady state stability reported in the literature. Finally, we extensively discuss the features of the model that lead to an indeterminate rather than an explosive steady state once the saddle-path stability is broken. Workplace Economics Institute - CERGE Contact Tomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122 Year of Publishing 2008
Number of the records: 1