Boucekkine, Raouf; Pommeret, Aude; Prieur, Fabien - Départment d'économétrie et d'économie politique … - 2012
This paper solves a second-best problem where a government has in particular to choose whether to tax financial inflows (capital controls) or not, and when. A multi-stage optimal control technique is used to this end. First, it is shown that it is optimal to switch in finite time from capital...
