propagated abroad. In previous work, we built on the theory of rational bubbles to develop a framework to think about the origins …

This paper develops a simple theory of capital controls as dynamic terms-of-trade manipulation. We study an infinite … relative strength of this desire between two consecutive periods. Specifically, it is optimal for the strategic country to tax … capital inflows (or subsidize capital outflows) if it grows faster than the rest of the world and to tax capital outflows (or …

This paper presents a dynamic political economy theory of public spending, taxation and debt. Policy choices are made … revenues via a distortionary income tax and by borrowing. These revenues can be used to finance a national public good and …, equilibrium tax rates are too high and too volatile, public good provision is too low and debt levels are too high. In some …

In this paper we employ index number theory in addressing the problem of adjusting real national income and real … domestic product for changes in a country's terms of trade. More specifically, using recent developments in the theory of … only production theory, whereas in the traditional paradigm which treats traded goods as perfectly substitutable with a …