Equilibrium dynamics in a two-sector model with taxes

• 成果类型: Article
• 署名作者: Ortigueira, S; Santos, MS
• 署名单位: Cornell University; Arizona State University; Arizona State University-Tempe
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1006/jeth.2001.2843
• 发表日期: 2002
• 页码: 99-119
• 关键词: distortionary taxes; competitive equilibrium; dynamic instability; non-interior equilibrium orbit

摘要

In this paper we are concerned with the equilibrium dynamics of a two-sector model of endogenous growth with distortionary taxes. We show that for certain parameters values and tax schemes every equilibrium orbit-except the steady state solution-is non-interior; i.e., there are times in which one of the sectors is inactive. This analysis confirms that in multisector models the set of easily checkable, universal conditions that can guarantee the interiority of equilibrium solutions is rather limited. Journal of Economic Literature Classification Numbers: D90, E22. (C) 2001 Elsevier Science (USA).