Kitano, Shigeto; Takaku, Kenya - Research Institute for Economics and Business … - 2011
spending reversals as a policy option available to policy-makers for stabilizing public debt. Results show that spending … in the discussion of optimal tax rate policy (Bi, 2010) does not arise. Spending reversals can lower both the tax rate … reversals can be welfare-improving and that there exists an optimal degree of spending reversal if the debt elasticity of the …
