New dynamic public finance: A user's guide

Mikhail Golosov, Aleh Tsyvinski, Iván Werning

Research output: Chapter in Book/Report/Conference proceedingChapter

122 Scopus citations

Abstract

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
Pages317-363
Number of pages47
ISBN (Print)0262012391, 9780262012393
DOIs
StatePublished - 2006

Publication series

NameNBER Macroeconomics Annual
Volume21
ISSN (Print)0889-3365

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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