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Ramsey fiscal policy and endogenous growth

✍ Scribed by Hyun Park


Book ID
105866821
Publisher
Springer
Year
2008
Tongue
English
Weight
296 KB
Volume
39
Category
Article
ISSN
0938-2259

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This paper revisits a well-known case of optimal fiscal policy in a Ramsey model where consumer utility is defined over consumption and public goods. We show that "normalising" the size of the population to one eliminates the scope for active policy-making since the decentralised equilibrium coincid