Papers on political economy and optimal taxation

Monetary/Fiscal Interaction with Forty Budget Constraints (joint with Gherardo Caracciolo)


A Ramsey Theory of Financial Distortions (joint with Wei Cui)

IFS Working Paper W21/05

Organizational Equilibrium with Capital (joint with Zhen Huo and Jose-Victor Rios-Rull)

NBER Working Paper no. 25376

Mobility, Population Growth, and Public Capital Spending in the United States (joint with Leslie McGranahan)

Review of Economic Dynamics, 2021, vol. 41, pp. 255-277. Special issue in honor of Alejandro Justiniano.
A significantly older version is available as NBER Working Paper no. 16970
Online Appendix
Code


Shotgun Wedding: Fiscal and Monetary Policy (joint with Thomas J. Sargent)

Annual Review of Economics, 2020, vol. 12, pp.659-690.
Free to download using the link above.

Public Investment and Budget Rules for State vs. Local Governments


Optimal Fiscal Policy with Heterogeneous Agents

Quantitative Economics, 2014, vol. 5, n.3, pp. 675-704. Open access.
Appendix for online publication
Working paper version (contains material that was not included in the published version)

The Research Agenda: Marco Bassetto on the Quantitative Evaluation of Fiscal Policy Rules

Economic Dynamics Newsletter, 2009, vol. 10, n.2. Open access.

Political Economy of Taxation in an Overlapping-Generations Economy

Review of Economic Dynamics, 2008, vol. 11, n.1, pp.18-43.
An earlier version is available as Federal Reserve Bank of Minneapolis Discussion Paper n. 133, 1999.

Government Investment and the European Stability and Growth Pact (joint with Vadym Lepetyuk)

Economic Perspectives, Federal Reserve Bank of Chicago, 2007, vol. 31, n.3, pp.33-43. Open access.
A more complete version is available as NBER Working Paper n. 13200, 2007.

Redistribution, Taxes, and the Median Voter (joint with Jess Benhabib)

Review of Economic Dynamics, 2006, vol.9, n.2, pp.211-223.
An earlier version (with some typos) is available as Working Paper, Federal Reserve Bank of Chicago, 2006 n.2.

Politics and Efficiency of Separating Capital and Ordinary Government Budgets (joint with Thomas J. Sargent)

Quarterly Journal of Economics, 2006, vol. 121, n.4, pp.1167-1210.
An older version is available as NBER Working Paper n. 11030, 2005.

On the Irrelevance of Government Debt when Taxes are Distortionary (joint with Narayana Kocherlakota)

Journal of Monetary Economics, 2004, vol. 51, n.2, pp.299-304.
Preprint version

Software code used in the papers above