Template-type: ReDIF-Paper 1.0
Author-Name: Manuel Santos
Author-Email: Manuel.Santos@asu.edu
Author-Homepage: http://wpcarey.asu.edu/Directory/stafffaculty.cfm?cobid=1039501
Author-Workplace-Name: W. P. Carey School of Business Department of Economics
Author-Workplace-Homepage: http://wpcarey.asu.edu/ecn/
Author-Name: Salvador Ortigueira
Author-Email: 
Author-Homepage: http://wpcarey.asu.edu/Directory/stafffaculty.cfm?cobid=2133888
Author-Workplace-Name: Cornell University
Author-Workplace-Homepage: 

Title: Equilibrium Dynamics in a Two-Sector Model with Taxes
Abstract: In this paper we are concerned with the equilibrium dynamics of a two-sector model of endogenous growth with distortionary taxes.  We show that for certain parameters values and tax schemes every equilibrium orbit--except the steady state solution--is non-interior; i.e., there are times in which one of the sectors is inactive.  This analysis confirms that in multisector models the set of easily checkable, universal conditions that can guarantee the interiority of equilibrium solutions is rather limited.		
Classification-JEL: D90, E22
Keywords: 
File-URL:http://wpcarey.asu.edu/tools/mytools/pubs_admin/FILES/global2.pdf
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Handle: RePec:asu:wpaper:2133332