We re-examine optimal monetary policy when lump-sum taxes are unavailable. Under commitment, we show that, with alternative utility functions to that considered in Nicolini’s related analysis, the direction of the incentive to cheat may depend on the initial level of government debt, with low debt creating an incentive towards surprise deflation, but high debt the reverse. Under discretion, we ...

This paper studies an overlapping generations model with selfish agents, natural resources and human capital externalities. The initial result is to quantify the economic effects of intergenerational transfers by comparing a complete markets allocation with transfers to an allocation without transfers due to incomplete markets. The core contribution is then to show that a higher resource regene...

We consider the 2 + 1 Toda system 1 4 ∆qn = e qn−1−qn − eqn−qn+1 in R, n ∈ Z. It has a traveling wave type solution {Qn} satisfying Qn+1(x, y) = Qn(x + 1 2 √ 2 , y), and is explicitly given by Qn (x, y) = ln 1 4 + ( n− 1 + 2 √ 2x )2 + 4y2 1 4 + ( n+ 2 √ 2x )2 + 4y2 . In this paper we prove that {Qn} is nondegenerate.

This paper studies majority voting over the size and location of a public good when voters di¤er both in income and in their preferences for the public good location. Public good provision is …nanced either by a lump sum tax or by a proportional income tax. We analyze both the simultaneous and the sequential determinations of the public good’s size and location. We show that, while the choice o...

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This paper examines the impact of a change in the German child benefit system in 1996, which led to a large increase in lump sum transfers to families with children. We analyze the impact on the labor force participation of family members as well as on household consumption directed to children. Comparing behavioral changes of adults with children with behavioral changes of adults without child...

This paper examines Ricardian equivalence in a world in which taxes are not lump sum, but are levied on risky labor income. It shows that the marginal propensity to consume out of a tax cut, coupled with a future income tax increase, can be substantial under plausible assumptions. Indeed, the MPC out of a tax cut can be closer to the Keynesian value that ignores the future tax liabilities than ...

I undertake a quantitative investigation into the short run effects of changes in the timing of taxes for model economies in which heterogeneous households face a borrowing constraint. A combination of the distortionary effects of non-lump-sum taxation and the liquidity effects arising from the asset market structure are found to imply large real effects from tax changes. For example, a tempora...

An equivalent circuit, made of the chain connection of a number of T-type two-port networks, is proposed for the very accurate representation of the frequency-domain behavior of radially inhomogeneous solitary cylindrical structures, the individual two-port networks being made of frequency-independent R, L and C lumped elements. The accuracy of the model is dictated by the number of two-port ne...