Tariff and Equilibrium Indeterminacy--(II)

We establish conditions under which indeterminacy can occur in a small open economy oil-in the production RBC model with lump sum tariff revenue transfers. The indeterminacy would require that the steady state tariff rates be in an open interval. This means that as long as the government revenues are exogenous, our indeterminacy result will be robust to the usage of the government revenue.

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Year of publication:	2008-06-16
Authors:	Zhang, Yan
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Indeterminacy \| Endogenous Tariff Rate \| Small Open Economy \| Lump Sum Transfers

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	F41 - Open Economy Macroeconomics ; Q43 - Energy and the Macroeconomy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005621890