This 1972 Journal of Economic Theory paper by Robert Lucas constructs an overlapping-generations general equilibrium model — young and old traders exchanging in two physically separated, …
Studying optimal Ramsey fiscal and monetary policy in a sticky-price production economy where the government can tax only distortingly and can issue only nominal, non-state-contingent bonds, …
This paper proves that the "interior" Ramsey steady state routinely assumed in heterogeneous-agent optimal-taxation models -- with a modified-golden-rule interest rate and a positive capital tax, as …