The paper examines the relationship between economic growth, tax policy, and distribution of capital and labor ownership in a one-sector political-economy model of endogenous growth with productive government spending financed by a proportional tax on capital income. The analysis shows that...

Multiple-equilibria macroeconomic models suggest that consumers and investors' perceptions about the state of the economy may be important independent factors for business cycles. In this paper, we examine empirically the interrelations between waves of optimism and pessimism and subsequent...

Multiple-equilibria macroeconomic models suggest that consumers and investors' perceptions about the state of the economy may be important independent factors for business cycles. In this paper, we examine empirically the interrelations between waves of optimism and pessimism and subsequent...