This article identifies tax policy that both speeds recovery from the current economic crisis and contributes to long-run growth. This is a challenge because short‐term recovery requires increases in demand while long‐term growth requires increases in supply. As short‐term tax concessions...

This paper analyzes the design of optimal taxes in less developed countries that suffer from excess rural-urban migration and reports results from a numerical model. These results illustrate the importance of both restrictions on the government's tax powers and the nature of the migration...