This book originated from a 2010 conference marking the fortieth anniversary of the publication of the landmark "Phelps volume," Microeconomic Foundations of Employment and Inflation Theory, a book that is often credited with pioneering the currently dominant approach to macroeconomic analysis....

This paper studies the efficient taxation of money and factor income in intertemporal optimizing growth models with infinite horizons, transaction costs technologies and flexible prices.  Second-best optimality calls for a positive inflation tax and a non-zero capital income tax when there are...

This paper studies the optimal inflation rate in a transactions costs model with illegal immigration. Although unauthorized immigrants use domestic money for making transactions and consume in the host country, their welfare does not enter the objective function of the Ramsey planner, because of...

In this paper, the incidence of a tax on pure rent is analyzed in an OLG two-sector small open economy, in which one sector produces a capital good and one sector a consumer good. Contrary to what is obtained by Feldstein (1977) in a one-sector closed economy, a rent tax does not necessarily...

This paper studies the efficient taxation of factor income in infinite-lived models with elastic fertility choices. Two models are considered, one with physical capital only, and one with physical and human capital. In the model with physical capital only, capital income should be subsidized,...

type="main" xml:lang="en" <p>This paper analyses the steady-state effects of inflation on capital accumulation within an optimizing monetary growth model with liquidity costs and an endogenous labour supply. It is assumed that consumption and leisure are perfect complements in the preferences of...</p>

This paper examines the steady-state implications of anticipated inflation within an exogenous monetary growth model with liquidity costs and an endogenous labour supply. Whether or not money is superneutral depends upon the utility function chosen. Monetary growth leaves capital and labour...

This paper studies the incidence of a tax on pure rent within an intertemporal optimizing model of capital accumulation and endogenous labor with infinite-lived agents. Two cases are considered for the labor market: the neoclassical theory, characterized by perfectly competitive wages and no...