Showing 1 - 10 of 11,091
What is the prescription of Ramsey capital taxation in the long run? Aiyagari (1995) addressed the question in a heterogeneous-agent incomplete-markets (HAIM) economy, showing that a positive capital tax should be imposed to implement the so-called modified golden rule (MGR). This paper revisits...
Persistent link: https://www.econbiz.de/10011690841
Traditionally, observed fluctuations in aggregate economic time series have been mainly modeled as being the result of exogenous disturbances. A better understanding of macroeconomic phenomena, however, surely requires looking directly at the relations between variables that may trigger...
Persistent link: https://www.econbiz.de/10010954709
Rational inattention theory is economic theory that recognizes that people have finite information-processing capacity, in the sense of Shannon and engineering information theory. This approach is still in the early stages of development, but it promises to provide a unified explanation for some...
Persistent link: https://www.econbiz.de/10014025676
Traditionally, observed fluctuations in aggregate economic time series have been mainly modeled as being the result of exogenous disturbances. A better understanding of macroeconomic phenomena, however, surely requires looking directly at the relations between variables that may trigger...
Persistent link: https://www.econbiz.de/10009708029
We propose a model to reconcile the theory of inter-temporal non-renewable resource depletion with well-known stylized facts concerning the exploitation of exhaustible resources such as oil. Our approach introduces geological constraints into a Hotelling type extraction–exploration model. We...
Persistent link: https://www.econbiz.de/10011263694
We develop a contingent claims model for a firm in financial distress with a formal account for renegotiations under the U.S. bankruptcy procedure (known as Chapter 11). Shareholders and two classes of creditors (senior and junior) alternatively propose a reorganization plan subject to a vote....
Persistent link: https://www.econbiz.de/10010871020
This paper investigates a class of dynamic selection processes for n-person normal-form games which includes the Brown-von Neumann-Nash dynamics. For (two-person) zero-sum games and for (n-person) potential games every limit set of these dynamics is a subset of the set of Nash-equilibria....
Persistent link: https://www.econbiz.de/10005081052
The purpose of this paper is to survey the theoretical literature on wealth transfer taxation. The focus is normative: we are looking at the design of an optimal tax structure from the standpoint of both equity and efficiency. The gist of this survey is that the optimal design crucially depends...
Persistent link: https://www.econbiz.de/10014023662
We study the effects of an annuity market imperfection on individual agents' life-cycle decisions and on the macroeconomic growth rate in an overlapping generations model with single-sector endogenous growth. Our model features both age-dependent mortality and labour productivity. We model...
Persistent link: https://www.econbiz.de/10010871052
This paper takes a new look at the long-run implications of resource abundance. It develops a Schumpeterian model of endogenous growth that incorporates an upstream resource-intensive sector and yields an analytical solution for the transition path. It then derives conditions under which, as the...
Persistent link: https://www.econbiz.de/10010582673