Publication in refereed journal
香港中文大学研究人员 ( 现职)
| 叶创基教授 (经济学系) |
全文
| 数位物件识别号 (DOI) ○○@http://aims.cuhk.edu.hk/converis/portal/Publication/2$@○○ |
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Web of Sciencehttp://aims.cuhk.edu.hk/converis/portal/Publication/2WOS source URL
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摘要This paper examines the relation between factor substitution and (local) stability of equilibria in a one-sector real business cycle model under balanced-budget rules. We show that under non-unitary elasticity of factor substitution, the Schmitt-Grohe-Uribe indeterminacy result can be altered. Using the two-step normalization procedure, we highlight two opposing effects of factor substitution, namely, the efficiency effect and the distribution effect, on aggregate stability. With endogenous distortionary taxes and gross substitutability between capital and labor, the existing literature overlooks the distribution effect and finds that balanced-budget rules are likely to deliver indeterminacy. However, if capital stock is relatively more abundant, a higher elasticity of substitution generates a source of stability due to the distribution effect. Our calibration shows that the distribution effect is always the dominating force.
着者Xue JP, Yip CK
期刊名称Journal of Public Economic Theory
出版年份http://aims.cuhk.edu.hk/converis/portal/Publication/2015
月份4
日期1
卷号17
期次http://aims.cuhk.edu.hk/converis/portal/Publication/2
出版社WILEY-BLACKWELL
页次196 - http://aims.cuhk.edu.hk/converis/portal/Publication/218
国际标準期刊号1097-39http://aims.cuhk.edu.hk/converis/portal/Publication/23
电子国际标準期刊号1467-9779
语言英式英语
Web of Science 学科类别Business & Economics; Economics
