frictions giving rise to money as a medium of exchange are explicitly modeled. The framework is a three period OLG model where … production efficiency in the search market. In the absence of record-keeping, the government uses flat money as a substitute for … distortionary taxation of money may be needed as part of the optimal policy even if lump-sum taxes are available. …

separately changing the tax rates on capital, labor and subsidies, as well as the replacement rates, are analyzed, assuming … offsetting changes in lump-sum transfers. Second, we rule out offsetting transfers and study how effective is the cut in labor … lump-sum transfers, reducing labor taxes and unemployment subsidies is beneficial to both employment and growth, while …

taxation (consumption and estate taxes) with important welfare implications. We use three different altruistic approaches (warm …

behaves as a negative wealth effect and generates an immediate decline in output, investment, and hours worked. The large drop … in investment then causes a gradual but very persistent decline in the capital stock. That protracted decline in the …