On the irrelevance of government debt when taxes are distortionary
نویسندگان
چکیده
منابع مشابه
Distortionary Taxes and Public Investment when Government Promises are not Enforceable∗
We characterize Markov-perfect equilibria in a setting where the absence of government commitment affects the financing of productive public capital. We show that at any date, a government in office only considers intertemporal distortions over two consecutive periods in choosing taxes. We then use our framework to quantify the value of commitment, which we define as that obtained from binding ...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2004
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2002.12.001