Tax Base and Crowding‐in Effects of Balanced Budget Fiscal Policy
构建了一个包含交错价格调整、垄断工资设定和扭曲性税收的动态一般均衡模型，发现临时性税收融资的政府支出增加可通过需求扩大税基来降低税率，从而在现实条件下使私人消费上升。
Abstract A dynamic general equilibrium business cycle model is constructed with staggered price adjustment, monopolistic wage setting and distortionary taxation. The government purchases goods, runs an unemployment benefit system and balances its budget through a proportional tax on labour income. A temporary tax‐financed increase in government expenditures can lower the tax rate through a demand‐induced widening of the tax base. It is shown analytically that this allows private consumption to rise, under realistic conditions, despite the negative wealth effect of increased fiscal spending.