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- W2485864177 abstract "This study addresses diffusion dynamics in an economic environment in which fiscal policy changes take place. The discussion, based upon a conventional intertemporal optimization setup, involves the consideration of a peculiar form of bounded rationality: it is assumed that only a small share of households is able to instantly recompute the optimal solution once the value of a tax rate is disturbed; all the other agents will then, gradually, follow the behavior of the first group (this can occur through contagion, social influence or social learning). As a result, the convergence towards the post-perturbation steady-state tends to follow a diffusion process and, consequently, policy measures may take time in affecting pervasively labor-leisure and consumption-savings choices." @default.
- W2485864177 created "2016-08-23" @default.
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- W2485864177 date "2014-01-01" @default.
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- W2485864177 title "Diffusion Dynamics in Economics: An Application to the Effects of Fiscal Policy" @default.
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- W2485864177 doi "https://doi.org/10.1007/978-3-319-04849-9_19" @default.
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