competition, (ii) if fiscal policy is used to avoid inefficiency and maintain an optimal capital intensity, the required debt …

which it provides sufficient liquidity to avoid financial constraints. In this case, capital-income taxes are zero in the … long run, and the returns on government debt and capital are equalized. However, if the fiscal space is insufficient, a … wedge opens between the rates of return on government debt and capital. In this case, optimal long-run tax policy is driven …

failed to capture the high returns to capital in these sectors, leading to relative economic decline …

country with looming oil exhaustibility concerns. Our results highlight the risks to fiscal and capital sustainability of oil … relatively faster buildup of sustainable public capital and sustain higher non-oil growth without adversely affecting the debt … form of a misallocation of resources can hinder attainment of sustainable public capital and positive non-oil growth …

capital enters production technologies, while public investment is subject to inefficiencies and absorptive capacity …. Fiscal adjustments through tax rates and government non-capital expenditures - which may be constrained by ceilings and …