Gavin, William T.; Kydland, Finn E.; Pakko, Michael R. - Federal Reserve Bank of St. Louis - 2006
). For survey of the tax policy issues and recent evidence, see Auerbach (2004).
2
to less persistent inflation …)
αα −
==
1
)(),(
ttttttttt
NxKzNxKFzY ,
where z
t
is a stationary technology shock and x
t
is an index of labor …-augmenting technical
progress that increases at a deterministic (gross) growth rate
)1/(1 α
γ
−
x
. The implied growth rate for
output …