scholarly journals Business Cycle Dynamics of a New Keynesian Overlapping Generations Model with Progressive Income Taxation

2006 ◽  
Author(s):  
Burkhard Heer ◽  
Alfred Maussner
Keyword(s):  
Business Cycle ◽  
Overlapping Generations ◽  
Income Taxation ◽  
New Keynesian ◽  
Overlapping Generations Model ◽  
Business Cycle Dynamics ◽  
Progressive Income Taxation

scholarly journals Business Cycles in a Two-Sided Altruism Model

Mathematics ◽  
2021 ◽  
Vol 9 (17) ◽  
pp. 2054
Author(s):  
Hiroshi Fujiu
Keyword(s):  
Dynamical System ◽  
Business Cycles ◽  
Business Cycle ◽  
Overlapping Generations ◽  
Overlapping Generations Model ◽  
Periodic Fluctuations

This study demonstrates that business cycles with complex periodic fluctuations may arise in an overlapping generations model with two-sided altruism. The structure of an equilibrium dynamical system strongly depends on the degree of altruism in the model. If either altruism of a generation to the parent or the child disappears, the study also demonstrates that complex periodic fluctuations never occur. In this sense, two-sided altruism is essential for a complex business cycle.

scholarly journals THE BURDEN OF UNANTICIPATED INFLATION: ANALYSIS OF AN OVERLAPPING-GENERATIONS MODEL WITH PROGRESSIVE INCOME TAXATION AND STAGGERED PRICES

2011 ◽  
Vol 16 (2) ◽  
pp. 278-308 ◽  
Author(s):  
Burkhard Heer ◽  
Alfred Maußner
Keyword(s):  
Overlapping Generations ◽  
Price Model ◽  
Overlapping Generations Model ◽  
Lump Sum ◽  
Short Run ◽  
The Business Cycle ◽  
Redistributive Effects ◽  
Progressive Income Taxation ◽  
Unanticipated Inflation

Inflation is often associated with a loss for the poor in the medium and long term. We study the short-run redistributive effects of unanticipated inflation in a dynamic optimizing sticky price model of the business cycle. Agents are heterogeneous with regard to their age and their productivity. We emphasize three channels of the effect of inflation on income distribution: (1) factor prices, (2) “bracket creep,” and (3) sticky pensions. Unanticipated inflation that is caused by monetary expansion is found to reduce income inequality. In particular, an increase of the money growth rate by one standard deviation results in a 1% drop of the Gini coefficient of disposable income if extra tax revenues are transferred lump-sum to the households.

Capital Income Taxation, Economic Growth and Heterogeneity in the Motivation to Give

2012 ◽  
Vol 13 (3) ◽  
pp. 291-306
Author(s):  
Lars Kunze
Keyword(s):  
Economic Growth ◽  
Income Tax ◽  
Overlapping Generations ◽  
Income Taxation ◽  
Capital Income ◽  
Capital Income Taxation ◽  
Overlapping Generations Model ◽  
Tax Rate ◽  
Motivation To Give ◽  
The Relationship

Abstract This study provides a comprehensive analysis of the relationship between capital income taxation and economic growth within an overlapping generations model when individuals may bequeath wealth. The altruistic concern is modeled as a synthesis of joy-of-giving and family altruism so that individuals may derive utility from the amount of bequest itself and by providing children with a disposable income later on in life. Using this framework, it is shown that, in contrast to the existing literature, increasing the capital income tax rate may well enhance growth under operative bequests.

scholarly journals SELF-FULFILLING PROPHECIES AND THE BUSINESS CYCLE

1997 ◽  
Vol 1 (4) ◽  
pp. 740-769 ◽  
Author(s):  
ROGER E.A. FARMER ◽  
MICHAEL WOODFORD
Keyword(s):  
Business Cycle ◽  
Wide Class ◽  
Rational Expectations ◽  
Overlapping Generations ◽  
Phillips Curve ◽  
Signal Extraction ◽  
Overlapping Generations Model ◽  
Sunspot Equilibria ◽  
The Business Cycle ◽  
States Of Nature

We demonstrate that multiple stationary rational-expectations equilibria exist in a version of Lucas's island economy. The existence of these equilibria follows from the fact that there is an indeterminate set of monetary equilibria in the two-period overlapping-generations model. We show how to construct stationary rational-expectations equilibria by randomizing over the set of nonstationary monetary equilibria. In some of our equilibria, a positively sloped Phillips curve exists even though our economy contains no signal-extraction problem as in the original Lucas paper. Our equilibria are indexed by beliefs and are examples of the existence of sunspot equilibria in which allocations may differ across states of nature for which preferences, technology, and endowments are identical. Our technique for constructing stationary sunspot equilibria should prove useful in a wide class of models in which an indeterminate stationary equilibrium exists.

Sign in / Sign up

Export Citation Format

Share Document