The theorem of the zero taxation of capital income is reexamined and is shown to hinge critically on the assupmtions of a long horizon and perfect markets for the inter-temporal allocation of resources: (i) with additive preferences, and for any permanent tax rate, a reduction of this rate for a...

A canonical model of Bayesian learning is presented in which the interaction of the observation of discrete activities and the possibility of delaying actions generate informational externalities with generic properties: (i) strategic complementarities or substituabilities arise, depending on...

Men of finance raised funds for loans, asientos, to Philip II by trading short-term financial instruments in credit markets and by selling long-term annuities, juros. These activities are illustrated by an asiento with the Maluenda brothers (July 13, 1595), where short-term credit secured by the...

In a financial market where agents trade for short-term profit and where news can increase the uncertainty of the public belief, there are strategic complementarities in the acquisition of private information and, if the cost of information is sufficiently small, a continuum of equilibrium...

In developing countries most of the financial assets are deposits at commercial banks. This article focuses on the implicit taxation of financial assets through seigniorage, reserve requirements, lending targets, and interest ceilings combined with inflation. The impact of taxation on financial...

This paper analyzes the dynamics of general equilibrium models with externalities in human capital accumulation which extends that of Uzawa-Lucas. Multiple balanced growth paths, with different growth rates, and a continuum of equilibria (with a unique balanced growth path) may exist. In...