Using a heterogeneous agent model allowing for different degrees of complementarity between capital, skilled and unskilled labour, this paper evaluates supply-side reforms consistent with lower public debt-to-GDP in the long-run. We find that, relative to the other tax reforms, capital tax cuts...

This paper introduces a two-stage interactive cobweb model with information diffusion. The additional stage of information diffusion leads to a possibility of up to five equilibria. Stability properties under learning remain similar to those under a model with one-way information diffusion, but...

I introduce "Expectational Business Cycles" where output fluctuates due to learning, heterogeneous forecasting models and random changes in the efficient forecasting model. Agents use one of two forecasting models to forecast future variables while heterogeneity is dictated via an evolutionary...