This paper examines the optimal time path of the tax rate, in a model where an increasing ratio of government debt to GDP is projected in the absence of policy changes.

This paper studies the effects of job creation tax credits (JCTCs) enacted by U.S. states between 1990 and 2007 to gain insights about fiscal foresight (alterations of current behavior by forwardlooking agents in anticipation of future policy changes). Nearly half of the states adopted JCTCs...