Chatterjee, Partha; Shukayev, Malik - Society for Economic Dynamics - SED - 2006
volatility. This is not the case for some of the commonly cited reasons like initial income, inequality or instability of regimes … outweigh distortionary costs of higher tax. Thus, the optimal tax policy in non-democratic countries, in contrast to that in … this as procyclical tax policy). Further, we show that procyclical tax rates will lead to higher volatility of growth rates …