What is the prescription of Ramsey capital taxation in the long run? Aiyagari (1995) addressed the question in a … heterogeneous-agent incomplete-markets (HAIM) economy, showing that a positive capital tax should be imposed to implement the so … possible if EIS is larger than 1 but the MGR does not hold and the corresponding capital tax is non-positive. The key to our …

The aggregate capital stock in a nation can be overaccumulated for many different reasons. This paper studies which … policy or policy mix is more effective in achieving the socially optimal (golden rule) level of aggregate capital stock in an … infinite-horizon heterogeneous-agents incomplete-markets economy where capital is over-accumulated for two distinct reasons: (i …