The answer to this question is "yes". We examine noncooperative and cooperative equilibria under perfect capital mobility. To this end, we develop a two-country optimal growth model with endogenous national fiscal policies. The channel for interdependence is distortionary income taxes.

In this paper we examine the past performance of the Greek economy in some detail, and we try to provide a few answers to the question of why growth slowed so dramatically.

In this paper we look at the behavior of physical depreciation over the business cycle. We do so within the context of a real business cycle model where the decisions of firms about physical capital utilization, maintenance, improvement and scrapping are endogenous. The model encompasses the...

This paper reviews recent theories that address cooperation and coordination issues in the conduct of fiscal policy in an economic union. This is done by discussing these issues in a complete, logically consistent framework that connects the various problems concerning fiscal policy in an...