Phelan, Christopher; Stacchetti, Ennio - In: Econometrica 69 (2001) 6, pp. 1491-1518
This paper presents a full characterization of the equilibrium value set of a Ramsey tax model. More generally, it develops a dynamic programming method for a class of policy games between the government and a continuum of households. By selectively incorporating Euler conditions into a...