Public Investment, Revenue Shocks, and Borrowing Restrictions
Büttner, Thiess; Wildasin, David E.;
Publisher: Verein für Socialpolitik Frankfurt a. M.
Subject: H74 | H72 | H71
This paper lays out a theory of taxation and public investment in an intertemporal setting under conditions of revenue shocks. Without borrowing restrictions, the optimal policy is characterized by smooth time paths of taxes and public investment. While the introduction... View more