Journal of Economic Theory

Robert E. Lucas Jr.

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, …

Narayana R. Kocherlakota

This 1998 *Journal of Economic Theory* paper by Narayana Kocherlakota asks what money technologically does by comparing it against an alternative record-keeping technology the paper calls memory: …

Stephanie Schmitt-Grohé · Martín Uribe

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, …

Jess Benhabib · Stephanie Schmitt-Grohé · Martín Uribe

Benhabib, Schmitt-Grohe, and Uribe show that active interest-rate feedback ("Taylor") rules -- which raise the nominal rate more than one-for-one with inflation and are conventionally recommended as …

YiLi Chien · Yi Wen

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 …