期刊名称：Discussion Paper Series / Department of Economics, New York University
出版年度：2005
卷号：1
出版社：New York University
摘要：We reconsider the optimal taxation of income from labor and capital in the
stochastic growth model analyzed by Chari et al. (1994, 1995), but using a
linear-quadratic (LQ) approximation to derive a log-linear approximation to
the optimal policy rules. The example illustrates how inaccurate \naive" LQ
approximation | in which the quadratic objective is obtained from a simple
Taylor expansion of the utility function of the representative household | can
be, but also shows how a correct LQ approximation can be obtained, which will
provide a correct local approximation to the optimal policy rules in the case
of small enough shocks. We also consider the numerical accuracy of the LQ
approximation in the case of shocks of the size assumed in the calibration of
Chari et al. We ¯nd that the correct LQ approximation yields results that are
quite accurate, and similar in most respects to the results obtained by Chari
et al. using a more computationally intensive numerical method.
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