Fernández, Andrés; Guzman, Daniel; Lama, Ruy; Vegh, … - 2023
To explain the fact that government spending and tax policy are procyclical in emerging and developing countries, we … necessarily procyclical tax policy. Explaining procyclical tax policy also requires that the ratio of private to public … procyclicality of tax policy holds in a more realistic DSGE model calibrated to emerging markets. Finally, we illustrate how larger …