Optimal Ramsey Capital Taxation with Endogenous Government Spending

Optimal Ramsey Capital Taxation w...

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S2016 · E13

Oct 21, 2023

04:08

Episode Notes: Optimal Ramsey Capital Taxation with Endogenous Government Spending

Introduction:
- Defining the Topic: Understand the core essence of optimal Ramsey capital taxation.
- Objective: Explain the challenge of balancing welfare loss against necessary government expenditure.
Main Discussion:
- Ramsey Framework:
  - Purpose: Designing an efficient tax system that maximizes social welfare.
  - Assumptions:
    1. Benevolent government focused on the best for society.
    2. Households can invest and get returns via capital markets.
- Endogenous Government Spending:
  - Concept: Government spending ...