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Alesina Drazen (1991) - Why Are Stabilizations Delayed (view source)
Revision as of 01:02, 8 March 2011
, 01:02, 8 March 2011→The Model
:<math>\tau(t) = \gamma(rb(t) +g_o)\,</math>
:<math>\therefore \tau(t) = \gamma rbr \bar{b}^{(1-\gamma)rt}\,</math>
where <math>b^\bar {b} \equiv b_0 + \frac{g_0}{r}\,</math>, which is the present discounted value of future taxes.
