| 主讲人简介： | Jianpo XUE is currently an associate professor at the Department of Public Economics, School of Finance, Renmin University of China. He obtained his Ph.D. from the Chinese University of Hong Kong at 2008. His research interests are macroeconomics, fiscal policy, monetary economics, and economic growth. He has published several papers on the journals as Journal of International Economics, Journal of Money, Credit and Banking, Journal of Economic Dynamics and Control, Economic Theory, Journal of Mathematical Economics, Macroeconomic Dynamics, Economics Letters, Journal of Public Economic Theory, Journal of Macroeconomics, etc. |
| 简介： |
In a closed-economy neoclassical growth model, it is well established that a balanced-budget rule based on capital income tax can rule out indeterminacy. This paper shows, on the contrary, that such a balanced-budget fiscal policy can induce aggregate instability unrelated to economic fundamentals in a similar closed-economy setting enhanced with endogenous capital utilization. Moreover, we find that the capital depreciation allowance is another crucial factor in governing macroeconomic stability. Therefore, our results add a short-run motivation to recommend a fiscal policy with low capital income tax rate and high depreciation allowance.
|