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Recursive methods in economic dynamics
I. THE RECURSIVE APPROACH 1. Introduction 2. An Overview 2.1 A Deterministic Model of Optimal Growth 2.2 A Stochastic Model of Optimal Growth 2.3 Competitive Equilibrium Growth 2.4 Conclusions andExpand
Optimal fiscal and monetary policy in an economy without capital
Abstract This paper is concerned with the structure and time-consistency of optimal fiscal and monetary policy in an economy without capital. In a dynamic context, optimal taxation means distributingExpand
Information, Trade, and Common Knowledge
Abstract In any voluntary trading process, if agents have rational expectations, then it is common knowledge among them that the equilibrium trade is feasible and individually rational. ThisExpand
Are There Limits to Growth
A simple theoretical model of pollution is developed that generates an inverted U-shape relationship between per capita income and environmental quality. This model is then used to study long-runExpand
Growth Effects of Flat-Rate Taxes
Recent estimates of the potential growth effects of tax reform vary wildly, ranging from zero to eight percentage points. Using an endogenous growth model, we assess which model features andExpand
A Comparison of Tournaments and Contracts
Tournaments, reward structures based on rank order, are compared with individual contracts in a model with one risk-neutral principal and many risk-averse agents. Each agent's output is a stochasticExpand
Money and Interest in a Cash-in-Advance Economy
In this paper we analyze an aggregative general equilibrimi model in which the use of money is motivated by a cash-in-advance constraint, applied to purchases of a subset of consumption goods. TheExpand
Dynamic Programming with Homogeneous Functions
Abstract We show that the basic existence, uniqueness, and convergence results of dynamic programming hold when the return function is homogeneous of degreeθ⩽1 and the constraints are homogeneous ofExpand
Intertemporal Price Discrimination
I. Introduction, 355.—II. No production costs: "pure" discrimination, 357.—III. Positive production costs, 363.—IV. Conclusion, 367.
Optimal growth with many consumers
Abstract A method is described for constructing all Pareto-optimal allocations for a dynamic economy with many heterogeneous consumers, under certainty, in which both the technology and consumerExpand