Tariff and Equilibrium Indeterminacy--A Note

Zhang, Yan and Chen, Yan (2008): Tariff and Equilibrium Indeterminacy--A Note.

Abstract

We explore the equivalence between the factor income taxes (in Schmitt-Grohe and Uribe 1997) in the closed economy and the tariff in the open economy, in the sense that they share similar propagation mechanism of sunspot and fundamental shocks under a balanced-budget rule.

• Item Type: MPRA Paper
• Language: English
• Keywords: Sunspots; Endogenous Tariff Rate; Comovement
• Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

References

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5. Zhang, Yan, 2008a, Tariff and Equilibrium Indeterminacy--(I), PhD thesis, Dept. of Economics, New York University