||WRIGHT, ALLAN; A. RAMÍREZ, FRANCISCO;
This paper explores the effects of changes in tax regime and fiscal policy among selected economies of Central America and the Caribbean. The results show how agents respond to changes in tax regimes and the impact upon investment, consumption and output growth. The findings will assist in determining allocation of income, consumption and investment as agents make inference regarding regime-switching of tax regimes.
Key Terms: Regime-switching, Fiscal Policy, Developing Economies
Regime - Switching and Fiscal Policy.Evidence from Selected Economies.pdf