Temptation and Taxation
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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