tag:blogger.com,1999:blog-8702840202604739302.post3043497755597303555..comments2024-03-28T03:38:53.734-07:00Comments on MacroMania: Blanchard and Farmer on the Phillips CurveDavid Andolfattohttp://www.blogger.com/profile/12138572028306561024noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8702840202604739302.post-56144888446992673542019-07-29T06:47:16.306-07:002019-07-29T06:47:16.306-07:00Of course, Ralph. But modeling the tax in the mann...Of course, Ralph. But modeling the tax in the manner you just described would have in no way changed the qualitative results of my model. It's important to keep an eye on the mechanisms being highlighted and to ask how sensitive the results are to the assumptions being made. In this case, the result is not sensitive to your observation. Thanks. David Andolfattohttps://www.blogger.com/profile/12138572028306561024noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-6775682278048979662019-07-29T04:16:58.322-07:002019-07-29T04:16:58.322-07:00That seems a very artificial and unrealistic set u...That seems a very artificial and unrealistic set up. For example: "The interest expense on the debt is financed with a lump-sum tax on old entrepreneurs." In the REAL world, interest on the debt is funded out of GENERAL taxation, not tax on just one group of people. Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.com