Aloi, Marta; Lasselle, Laurence - Centre for Dynamic Macroeconomic Analysis, University … - 2007
subsidy can make the steady state stable. Such a policy has beneficial effects as it fosters output growth along the … a countercyclical policy rule. In
particular if, at the end of period t − 1 (i.e. outset of period t), the government …. Judd (1992), ”Cyclical and Cahotic Behavior in a Dy-
namic Equilibrium Model, with Implications for Fiscal Policy”, in J …