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In contrast, in the model with constant taxes, hours worked per working-age person fall by only 11.7%.
With certain and constant taxes there would not be an effect on asset prices versus no taxes.
The results in Fig. 12 show that the model with increasing taxes performs better in explaining hours worked than the model with constant taxes.
The model with constant taxes does better in predicting the increase in output over the whole period but overpredicts the increase in the 1980s and 1990s.
Second, the model with constant taxes accounts for more output growth because it does not account for the drop in hours worked.
We see that two reasons explain why the model with constant taxes does a better job in capturing the average growth in GDP per working-age person over the period 1974 2015 than does the benchmark model: First, the model with constant taxes does a better job in capturing the capital deepening that starts in the 1980s.
Similar(49)
"People have had it with the constant tax hikes and all the waste and duplication.
The efficient allocation can be implemented by an increasing benefit during unemployment and a constant tax during employment.
With the school budget vote looming, there are many residents who are contemplating voting down the budget because of frustration at the constant tax increases.
"If voters want to put an end to runaway spending and the constant tax increases, they best hope we end up with a Republican legislature," said Mr. Schmitt, the minority leader.
It varies with i's initial wealth (w i ) and the constant tax rate (t).
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com