I analyze optimal fiscal policy choices in a continuous time endogenous growth model similar to Barro's. The government uses income taxes from representative 'rich' and 'poor' households to finance purchases of productive goods and to make transfer payments to poor households. Increases in...

Ian Steedman (Consumption Takes Time: Implications for Economic Theory, Routledge, London, 2001) has shown, among other things, that when a household chooses amounts of time to allocate to competing consumption activities subject to both a money income constraint and a time constraint, at least...