Political Economy of Ramsey Taxation

  title={Political Economy of Ramsey Taxation},
  author={Mikhail Golosov and NES Aleh Tsyvinski},
We study the dynamic taxation of capital and labor in the Ramsey model under the assumption that taxes and public good provision are decided by a self-interested politician who cannot commit to policies. We show that, as long as the politician is as patient as the citizens, the Chamley-Judd result of zero long-run taxes holds. In contrast, if the politician is less patient than the citizens, the best (subgame perfect) equilibrium from the viewpoint of the citizens involves long-run capital… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.
11 Citations
48 References
Similar Papers


Publications referenced by this paper.
Showing 1-10 of 48 references

On the Timing of the Optimal Capital Taxation.

  • Hassler, John, Per Krusell, Kjetil Storesletten, Fabrizio Zilibotti
  • Journal of Monetary Economics,
  • 2008

“A Dynamic Theory of Spending, Taxation, and Debt.”forthcoming American Economic Review

  • Battaglini, Marco, Stephen Coate
  • 2008

“The Political Economy of Nonlinear Capital Taxation,”mimeo, Harvard and MIT

  • Farhi, Emmanuel, Ivan Werning
  • 2008

Similar Papers

Loading similar papers…