Caballé, Jordi (contributor); … - 2001 - [Elektronische Ressource]
Keynes-Ramsey equation (25) of the IH model, we obtain the
following optimal taxation condition:
MRS
CJ
t,t+1
�
h
IH
t
,x
IH … policy.
Key words: endogenous growth, habit formation, consumption externalities, op-
timal taxation.
JEL Classi … maximize the discounted sum of utilities of each
of its identical members,
∞
X
t=0
�
1
1+ρ
�
t
u
t
, (5)
where ρ > 0 is the …