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Dynamic optimal taxation, rational expectations and optimal control

โœ Scribed by Finn E. Kydland; Edward C. Prescott


Publisher
Elsevier Science
Year
1980
Tongue
English
Weight
682 KB
Volume
2
Category
Article
ISSN
0165-1889

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This paper presents algorithms that solve for optimal simple monetary policy rules in rational expectations models with precommitment and discretion. The algorithms are applied to the models in Fuhrer (J. Money, Credit, Banking 29 (1997) 214), Clarida et al. (J. Econ. Lit. 37 (1999) 1661) and Rudebu