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Tax-related incomes policies and macroeconomic...
Journal article

Tax-related incomes policies and macroeconomic stability

Abstract

Several varieties of tax-based incomes policies (TIPs) are added to a standard macroeconomic model, to test whether they act as built-in stabilizers. We conclude that employer TIPS based on price increases, and employee TIPS based on wage increases act as built-in destabilizers, and that only an employer TIP based on wage increases can avoid this problem.

Authors

Scarth WM

Journal

Journal of Macroeconomics, Vol. 5, No. 1, pp. 91–103

Publisher

Elsevier

Publication Date

1983

DOI

10.1016/0164-0704(83)90007-1

ISSN

0164-0704