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We explore the equivalence between the factor income taxes in Schmitt-Grohe and Uribe 1997 in the closed economy and the tariff in the open economy, in the sense that they share similar propagation mechanism of sunspot and fundamental shocks under a balanced-budget rule.

Item Type: MPRA Paper -

Original Title: Tariff and Equilibrium Indeterminacy-A Note-

Language: English-

Keywords: Sunspots; Endogenous Tariff Rate; Comovement-

Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy MacroeconomicsQ - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy-

Autor: Zhang, Yan

Fuente: https://mpra.ub.uni-muenchen.de/10044/

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