In this paper, the authors present an infinite-horizon economy where the stock of technological knowledge enhances the productivity of all households. Technological knowledge depends upon public sector investments in R&D. These investments are financed by income taxes. Households in the authors'...

We construct a dynamic general equilibrium model to analyze the effects of large energy subsidies in a small open economy. The model includes domestic energy production and consumption, trade in energy at world market prices, as well as private and public sector production. The model is...

We study the optimal degree of fiscal decentralization in a dynamic federal economy where governments decide on budget size and its allocation between public education and infrastructure spending. We find that full centralization of tax and expenditure policies is optimal when infrastructure...

We formulate an overlapping generations model with skill heterogeneity and productive and non-productive government programs to study the macroeconomic and intergenerational welfare effects caused by risk premium shocks and government debt reductions. We demonstrate that in a small open economy...

We construct a dynamic general equilibrium model to analyze the fiscal situation of Egypt. We model Egypt as a small open economy that takes real interest rates and world prices of fuel as given. Since a large component of the government budget consists of pensions payments, we use an...

This paper contains a model with which the desirability of persistent urbanization can be examined. There are two regions: city and countryside. Joint restrictions on the technologies in each region and on preferences over the goods produced in each region are the driving force of migration. In...