The Taxation of Saving Returns in Overlapping Generations Economies with Stochastic Asset Bubbles

@inproceedings{Dvila2009TheTO,
  title={The Taxation of Saving Returns in Overlapping Generations Economies with Stochastic Asset Bubbles},
  author={Julio D{\'a}vila},
  year={2009}
}
In the standard simple overlapping generations model with production (Diamond (1965)), the steady state competitive equilibrium level of capital under laissez-faire does not typically maximize the net production if the agents can save only in terms of capital. In particular, whenever the steady state competitive equilibrium level of capital is too high, net… CONTINUE READING