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Temptation and Taxation

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Author Info

  • Per Krusell
  • Burhanettin Kuruscu
  • Anthony A. Smith, Jr.

Abstract

In this paper we attempt to (i) extend the competitive equilibrium neoclassical growth model to incorporate consumer preferences that are of the Gul-Pesendorfer variety; (ii) use the model to analyze taxation and welfare; and (iii) extend and specialize the Gul-Pesendorfer temptation formulation to be dynamic and, in particular, quasi-geometric, thus providing a link to, and possibly an interpretation of, the Laibson model.

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Bibliographic Info

Paper provided by Carnegie Mellon University, Tepper School of Business in its series GSIA Working Papers with number 2001-12.

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Date of creation: Dec 2000
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Handle: RePEc:cmu:gsiawp:-1095235306

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Postal: Tepper School of Business, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213-3890
Web page: http://www.tepper.cmu.edu/

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Web: http://student-3k.tepper.cmu.edu/gsiadoc/GSIA_WP.asp

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