Krusell, Per; Kuruscu, Burhanettin; Smith Jr., Anthony A - C.E.P.R. Discussion Papers - 2001
. For this class, we characterize the welfare properties of competitive equilibria and compare them to that of a planning …-value utility subject to resource constraints. The competitive equilibrium results in strictly higher welfare than does the planning … tax rates on capital. These tax rates reproduce the central planning solution, and thus imply a worse outcome in welfare …