Optimal nonlinear income taxation with productive government expenditure

Environmental consciousness, economic growth, and macroeconomic instability

“…Now, we turn to examine the local stability properties of the dynamic system. In line with Barro and Sala-i-Martin (2004) and Lai and Liao (2012), we define a transformed variable y ≡ C/K. As a consequence, from Eqs.…”

Do habits generate endogenous fluctuations in a growing economy?

“…17 The usual taxation models assume that the government spending is either consumptive or redistributive lump-sum transfers; therefore, unlike in this model, no additional spending distortion exists. Also refer to Park and Philippopoulos (2004) and Lai and Liao (2012) for distortive tax and spending in an endogenous growth model. 18 Without loss of generality, the logarithmic linear felicity function simplifies the algebraic expression in the necessary conditions and provides an analytic solution to the social planning problem.…”

Fiscal Rule in Africa

“…Despite the weakness in the model build-up, the study has provoked a considerable level of argument in literature on the extents to which endogenous model can be used to stimulate private investment. Interestingly, most papers assumed (erroneously) that government budget is always balanced at each point in time (Alberto Alesina et al, 2018;Bishnu, Ghate, & Gopalakrishnan, 2016;Burkhead, 1954;Diniz, 2018;Glomm & Ravikumar, 2016;Gobbi & Grazzini, 2019;Kataryniuk & Vallés, 2018;Lai & Liao, 2012). Conditional exceptions are provided by (Greiner & Flaschel, 2010;Iwata, 2009Iwata, , 2013Minea & Villieu, 2010;Ramey & Zubairy, 2018b;Sriyana, 2018;Ueshina, 2018;Zubairy, 2009).…”