Acemoglu, Daron; Golosov, Mikhail; Tsyvinski, Aleh - National Bureau of Economic Research (NBER) - 2009
We study the dynamic taxation of capital and labor in the Ramsey model under the assumption that taxes and public good provision are decided by a self-interested politician who cannot commit to policies. We show that, as long as the discount factor of the politician is equal to or greater than...