| Record ID | marc_loc_2016/BooksAll.2016.part33.utf8:69850828:2254 |
| Source | Library of Congress |
| Download Link | /show-records/marc_loc_2016/BooksAll.2016.part33.utf8:69850828:2254?format=raw |
LEADER: 02254cam a22003137a 4500
001 2005616173
003 DLC
005 20100713083521.0
007 cr |||||||||||
008 050124s2005 mau sb 000 0 eng
010 $a 2005616173
040 $aDLC$cDLC$dDLC
050 00 $aHB1
100 1 $aBenigno, Pierpaolo.
245 10 $aOptimal taxation in an RBC model$h[electronic resource] :$ba linear-quadratic approach /$cPierpaolo Benigno, Michael Woodford.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2005.
490 1 $aNBER working paper series ;$vworking paper 11029
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 1/24/2005.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"We reconsider the optimal taxation of income from labor and capital in the stochastic growth model analyzed by Chari et al. (1994, 1995), but using a linear-quadratic (LQ) approximation to derive a log-linear approximation to the optimal policy rules. The example illustrates how inaccurate "naive" LQ approximation --- in which the quadratic objective is obtained from a simple Taylor expansion of the utility function of the representative household---can be, but also shows how a correct LQ approximation can be obtained, which will provide a correct local approximation to the optimal policy rules in the case of small enough shocks. We also consider the numerical accuracy of the LQ approximation in the case of shocks of the size assumed in the calibration of Chari et al. We find that the correct LQ approximation yields results that are quite accurate, and similar in most respects to the results obtained by Chari et al. using a more computationally intensive numerical method"--National Bureau of Economic Research web site.
650 0 $aIncome tax$xMathematical models.
650 0 $aTaxation$xMathematical models.
700 1 $aWoodford, Michael,$d1955-
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 11029.
856 40 $uhttp://papers.nber.org/papers/w11029