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dc.contributor.authorGOTTARDI, Piero 
dc.contributor.authorKAJII, Atsushi
dc.contributor.authorNAKAJIMA, Tomoyuki
dc.date.accessioned2011-05-17T12:00:38Z
dc.date.available2011-05-17T12:00:38Z
dc.date.issued2011-01-01
dc.identifier.issn1725-6704
dc.identifier.urihttp://hdl.handle.net/1814/17218
dc.description.abstractWe study the dynamic Ramsey problem of finding optimal public debt and linear taxes on capital and labor income within a tractable infinite horizon model with incomplete markets. With zero public expenditure and debt, it is optimal to tax the risky labor income and subsidize capital, while a positive amount of public debt is welfare improving. A steady state optimality condition is derived which implies that the tax on capital is positive, when savings are sufficiently inelastic to returns. A calibration of our model to the US economy indicates positive optimal taxes and a small but positive optimal debt level.en
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2011/18en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectincomplete marketsen
dc.subjectRamsey equilibriumen
dc.subjectoptimal taxationen
dc.subjectoptimal public debten
dc.subjectconstrained inefficiencyen
dc.subjectD52en
dc.subjectD60en
dc.subjectD90en
dc.subjectE20en
dc.subjectE62en
dc.subjectH21en
dc.subjectO40en
dc.titleOptimal Taxation and Constrained Inefficiency in an Infinite-Horizon Economy with Incomplete Marketsen
dc.typeWorking Paperen
dc.neeo.contributorGOTTARDI|Piero|aut|EUI70004
dc.neeo.contributorKAJII|Atsushi|aut|
dc.neeo.contributorNAKAJIMA|Tomoyuki|aut|
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