This paper considers monetary and fiscal policy when tangible assets can be accumulated after shocks that increase desired savings, like Joseph's biblical prophecy of seven fat years followed by seven lean years. The model's flexible-price allocation mimics Joseph's saving to smooth consumption....

This paper evaluates the quantitative macroeconomic effects of the persistent decline of income and corporate tax rates in Israel during the 2000s. The analysis is based on the simulation of a calibrated model, given a parameterized version of the tax rates process in this period. The results...