New dynamic public finance: A user's guide

Mikhail Golosov, Aleh Tsyvinski, Iván Werning

Research output: Chapter in Book/Report/Conference proceedingChapter

124 Scopus citations


This paper reviews recent advances in the theory of optimal policy in a dynamic Mirrlees setting, and contrasts this approach to the one based on the representative-agent Ramsey framework. We revisit three classical issues and focus on insights and results that contrast with those from the Ramsey approach. In particular, we illustrate, using a simple two period economy, the implications for capital taxation, tax smoothing, and time inconsistency.

Original languageEnglish (US)
Title of host publicationNBER Macroeconomics Annual
PublisherUniversity of Chicago Press
Number of pages47
ISBN (Print)0262012391, 9780262012393
StatePublished - 2006

Publication series

NameNBER Macroeconomics Annual
ISSN (Print)0889-3365

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


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