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Alesina Drazen (1991) - Why Are Stabilizations Delayed (view source)
Revision as of 01:05, 8 March 2011
, 01:05, 8 March 2011→The Model
Taxes after stabilization <math>T\,</math> are:
:<math>\tau(tT) = rb(tT) +g_T\,</math>
where <math>g_T\,</math> is the expenditure after stabilization.
If assume <math>g_T = g_0\,</math>, <math>\tau(T) = r \bar{b} e^{(1-\gamma)rT\,</math>
