We provide an introduction to optimal fiscal and monetary policy using the primal approach
to optimal taxation. We use this approach to address how fiscal and monetary policy should …

In a recent review article, Agell et al.(ALO)[Agell, J., Lindh, T., Ohlsson, H., 1997. Growth and
the public sector: a critical review essay. European Journal of Political Economy 13, 33–52.] …

Using a quantitative model that features technical progress in automation and endogenous
skill choice, we show that, given the current US tax system, a sustained fall in automation …

The substantially revised fourth edition of a widely used text, offering both an introduction to
recursive methods and advanced material, mixing tools and sample applications. Recursive …

We quantitatively characterize the optimal capital and labor income tax in an overlap**
generations model with idiosyncratic, uninsurable income shocks and permanent …

We study the problem of optimal taxation in three infinite-horizon, representative-agent
endogenous growth models. The first model is a convex model in which physical and human …

How should carbon be taxed as a part of fiscal policy? The literature on optimal carbon
pricing often abstracts from other taxes. However, when governments raise revenues with …

For a wide class of infinitely lived agent models, Chamley has shown that the optimal capital
income tax rate is zero in the long run. Lucas has argued that for the US economy, there is a …

This paper assesses the effects of fiscal consolidation and expenditure composition on
economic growth in a sample of 39 low-income countries during the 1990s. The paper finds …

This chapter analyzes the distortions created by taxation and the features of tax systems that
minimize such distortions (subject to achieving other government objectives). It starts with a …