Hayashi, Fumio; Prescott, Edward C. - 2000 - [Elektronische Ressource]
period-budget constraint of the household, which owns the capital and rents it to the
business sector, is
tttttttttt … geometrically, so
ttt
XKK +−=
+
)1(
1
δ 9
The government budget constraint is implied by the household budget constraint (6) and the … resource
constraint (8). By treating the capital tax income rate τ as a policy parameter, we are assuming that
changes in …
