Aguiar, Mark (contributor); Amador, Manuel (contributor); … - 2006 - This version: April 17, 2006
inability of the government to commit to policy. We characterize the best sustainable fiscal policy and show that it can amplify …'s credibility not to expropriate capital varies endogenously with the state of the economy and may be "scarcest" during recessions … markets and the lack of commitment that generate investment cycles even in an environment where first-best capital stock is …