Runkel, Marco; Eichner, Thomas - Fakultät für Wirtschaftswissenschaft, … - 2010
This paper points to the important role which the elasticity of aggregate capital supply with respect to the net rate … spillovers among jurisdictions. In accordance with previous studies, we show that under the assumption of a fixed capital supply … (zero capital supply elasticity) the decentralized policy choice is optimal. If the capital supply elasticity is strictly …