Optimal fiscal policy when public capital is productive: a business- cycle perspective

An examination of the business cycle implications of productive public capital in a two-sector, dynamic general-equilibrium model with optimal fiscal policy. In simulations, public investment and public consumption move procyclically, and the capital tax is more variable than the labor tax--features also observed in annual U.S. data.

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Year of publication:	1994
Authors:	Lansing, Kevin J.
Institutions:	Federal Reserve Bank of Cleveland
Subject:	Capital \| Fiscal policy

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Extent:	application/pdf
Series:	Working Paper.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 9406
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005428284