Leeper, Eric M. (contributor); Walker, Todd B. (contributor) - 2008
result is consistent with the
interpretation that information contained in financial variables reflects agents’ knowledge
of … agent at t has (in this case, perfect) knowledge of
{ˆτ
t+q
, ˆτ
t+q−1
,...}.
It is useful to replace the tax rates in (4 … obtained as a square-
summable linear combination of current and past y
t
. This suggests that knowledge of past
and present y …