Universidad de Montevideo, Facultad de Ciencias Empresariales y Economía, Departamento de Economía
Date
2013
Extensión
7 p.
Abstract
We provide an example that shows that in the Alesina and Angeletos (2005) model one can obtain multiplicity even if luck plays no role inthe economy. Thus, it is not critical that the noise to signal ratio beincreasing in taxes, or that desired taxes are increasing in the noise tosignal ratio.