A continuous time economic IS-LM model with distributed tax collection lag is proposed. Phase transitions from stability to stable oscillations and finally to chaotic motion are shown to occur. The model thus offers an explanation of the multiperiodicity and irregularity in business cycles. The suggested implications in fiscal control policy could be of help in the current economic and political debate on the role of fiscal policy in the European countries.
|Autori:||Luciano Fanti; Manfredi P.|
|Titolo:||Chaotic business cycles and fiscal policy: An IS-LM model with distributed tax collection lags|
|Anno del prodotto:||2007|
|Digital Object Identifier (DOI):||10.1016/j.chaos.2005.11.024|
|Appare nelle tipologie:||1.1 Articolo in rivista|