This paper computes welfare-maximizing monetary and tax policy feedback rules in acalibrated dynamic general equilibrium model with sticky prices. The government makesexogenous final good purchases, levies a proportional income tax, and issues nominalone-period bonds. A quadratic approximation...

The literature on new goods and social welfare generally assumes thatmanufacturers develop innovations. But innovation by users has been foundto also be an important part of innovative activity in the economy. In this Paperwe explore the impact of users as a source of innovation on product...