Matthias Doepke - Marcroeconomics - Chapter 13 docx

... γ=0.5 τ T(τ) Figure 13. 1: A government revenue func- tion that exhibits a Laffer curve. A Lump-sum Tax Now let us introduce a lump-sum tax of amount . 2 No matter what income the house- hold accumulates, ... function of . The government’s period-by-period revenue function ( ) is now simply: ( )= ( SS SS ) where SS is the steady-state investment level (which is tax-exempt). We can find SS by...

Ngày tải lên: 04/07/2014, 10:20

... Cycles Technology shocks: Real-world production functions change over time. New tech- nologies like computers or robots alter the production process and raise overall pro- ductivity. Sometimes, production ... computers. Monetary shocks: We saw in Chapter 8 on inflation that there are real effects of mon- etary policy. Therefore random changes to money supply or interest rates are a po- tenti...

Ngày tải lên: 04/07/2014, 10:20

... production function equa- tion (11.1) exhibits constant returns to scale, which means that if we double both inputs, output also doubles. Our choice of a constant-returns-to-scale production function ... with 1 See Chapter 1 for a discussion of growth rates and how to compute them. Chapter 11 Economic Growth This chapter examines the determinants of economic growth. A startling fact abo...

Ngày tải lên: 04/07/2014, 10:20

... war steady-state, but the relatively short duration of the war prevents it from ever reaching that steady-state. After the war the econ- omy transitions slowly back to its pre-war steady-state. ... fully discuss tax policy, for this chapter we will assume that the gov- ernment levies a very special kind of tax: a lump-sum tax. That is, the government an- nounces a spending plan and then ......

Ngày tải lên: 04/07/2014, 10:20