Recent developments in public finance in the analysis of dynamic government debt policies have emphasized effects on the distribution of real resources across generations. At the same time, macroeconomists have emphasized the importance of the length of the time horizon over which agents...

We examine the problem of optimal taxation in a dynamic economy with imperfectly competitive markets. We find that the optimal tax system will tend to provide subsidies for the purchase of capital goods to offset gaps between price and marginal cost. The average tax on capital income will be...

Recent advances in the examination of efficiency gains from dynamic tax reforms have used simulation models to isolate intragenerational and/or intergenerational effects. Important considerations having to do with uncertainty or capital market imperfections are frequently missing from such a...

This paper describes the first model considered in the computational suite project that compares different numerical algorithms. It is an incomplete markets economy with a continuum of agents and an inequality (borrowing) constraint.

To harness the full power of computer technology, economists need to use a broad range of mathematical techniques. In this book, Kenneth Judd presents techniques from the numerical analysis and applied mathematics literatures and shows how to use them in economic analyses. The book is divided...

This handbook comprises 16 chapters surveying agent-based computational economics research, 6 shorter essays providing personal perspectives, and a "getting started" guide for newcomers to agent-based modeling in the social sciences. Research topics covered include: learning representations for...

One issue often overlooked in dynamic fiscal policy analysis is the importance of assumptions made regarding individuals' abilities to use capital markets to transfer income across time. We focus on the impact of borrowing restrictions on consumption functions within the life cycle framework,...