Baldini, Massimo; Lambertini, Luca - In: Japan and the World Economy 23 (2011) 1, pp. 13-18
We illustrate a differential oligopoly game using the capital accumulation dynamics à la Ramsey. We evaluate the effects of profit taxation, proving that there exists a tax rate yielding the same steady state social welfare as under social planning. Contrary to the static approach, our dynamic...