Sequential equilibria in a Ramsey tax model

Christopher Phelan, Ennio Stacchetti

    Research output: Contribution to journalArticlepeer-review


    This paper presents a full characterization of the equilibrium value set of a Ramsey tax model. More generally, it develops a dynamic programming method for a class of policy games between the government and a continuum of households. By selectively incorporating Euler conditions into a strategic dynamic programming framework, we wed two technologies that are usually considered competing alternatives, resulting in a substantial simplification of the problem.

    Original languageEnglish (US)
    Pages (from-to)1491-1518
    Number of pages28
    Issue number6
    StatePublished - 2001


    • Capital taxation
    • Government credibility
    • Recursive methods
    • Time consistent government policy

    ASJC Scopus subject areas

    • Economics and Econometrics


    Dive into the research topics of 'Sequential equilibria in a Ramsey tax model'. Together they form a unique fingerprint.

    Cite this