The standard analysis of the efficient management of income taxes and debt assumes a
benevolent government and ignores potential distortions arising from rent-seeking …

This article develops a model of optimal government debt maturity in which the government
cannot issue state-contingent bonds and cannot commit to fiscal policy. If the government …

In this article, I show that the key aspects of sovereign debt crises can be rationalized as part
of the efficient risk-sharing arrangement between a sovereign borrower and foreign lenders …

This paper studies the design of optimal fiscal policy when a government that fully trusts the
probability model of government expenditures faces a fearful public that forms pessimistic …

Assuming the role of debt management is to provide hedging against fiscal shocks we
consider:(i) what indicators can be used to assess the performance of debt management?(ii) …

I study the implications of recursive utility, a popular preference specification in macro-
finance, for the design of optimal fiscal policy. Standard Ramsey tax-smoothing prescriptions …

In 1790, a US paper dollar was widely held in disrepute (something shoddy was not 'worth a
Continental'). By 1879, a US paper dollar had become 'as good as gold'. These outcomes …

The Ramsey model of fiscal policy implies that taxes should be smooth in the sense of
having small variances. In contrast, empirical labour tax processes are smooth in the sense …

This paper studies the long-run properties of intertemporal distortions in a broad class of
second-best economies. Our unified framework encompasses and extends many well …

Income inequality and worker migration significantly affect sovereign default risk.
Governments often impose progressive taxes to reduce inequality, which redistribute income …