The failure of stabilization policy: balanced-budget fiscal rules in the presence of incompressible public expenditures

DOI10.1016/J.JEDC.2020.103996zbMath1475.91200OpenAlexW2999987197MaRDI QIDQ2246743

Leonor Modesto, Nicolas Abad, Teresa Lloyd-Braga

Publication date: 16 November 2021

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/j.jedc.2020.103996

zbMATH Keywords

fiscal policyinfinite horizon neoclassical modelregime switching rational expectation equilibrium

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64)

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• The perils of Taylor rules

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