Although technical knowledge generates spillover benefits, production of technical knowledge creates congestion externalities; thus, private R&D investment could be inefficient. A computable general equilibrium model is used to rank tax incentives by their effects on research effort and measure...

General sales taxes provide substantial fractions of state and local revenues in the US. However, state and local sales tax bases have been eroding steadily during the past 50 years. Base erosion contributes to fiscal stress in the states; therefore, prospects for continued sales tax base...

Ricardian behavior may increase the variance of consumption: A change in national income will change future tax liabilities endogenously; if consumers are Ricardian, consumption will change for this reason. This paper studies the effects of these changes on the stability of an economy with...