Endogenous macroeconomic growth theory

Progressive Taxation, Endogenous Growth, and Macroeconomic (In)stability∗

In the context of a standard one-sector AK model of endogenous growth, we show that the economy exhibits equilibrium indeterminacy and belief-driven aggregate fluctuations under progressive taxation of income. When the tax schedule is regressive or flat, the economy’s balanced growth path displays saddle-path stability and equilibrium uniqueness. These results imply that in sharp contrast to a ...

Endogenous and exogenous factors in growth theory

Endogenous and exogenous factors in growth theory

Real Macroeconomic Theory

Notes on Macroeconomic Theory

Macroeconomic growth determining

In the offered work two approaches to the problem of economic growth rate determining is considered. The first approach assumes, that economic growth rate is set exogenously, so its value is known while at the second approach economic growth rate is determined endogenously, i.e. its value is unknown. In the model there are included such components of the economic growth, which are determined by...