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经济代写|宏观经济学代考Macroeconomics代写|ECON-322 Preliminaries for the Ramsey Prob

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经济代写|宏观经济学代考Macroeconomics代写|Preliminaries for the Ramsey Prob

Before we lay out the Ramsey model, we are going to need to define some terms. In particular, readers may be unfamiliar with excise taxes, which are used extensively in this chapter. Also, we will define in general terms the structure of Ramsey problems. Finally, we will define indirect utility, an important concept with which the reader may be unfamiliar.

An excise tax is a constant tariff levied on each unit of a good consumed. An example would be a $\$ 1 /$gallon gasoline tax, or a$\$0.25 /$ pack cigarette tax. These are not sales taxes. Sales taxes are levied as a percentage of the total value of the goods purchased. Excise taxes are unaffected by the price of the taxed good. If there were a vector of $n$ goods $\left{x_i\right}_{i=1}^n$, with an associated vector of prices $\left{p_i\right}_{i=1}^n$, and a consumer had $m$ total dollars to spend on these goods, her budget constraint would be:
$$\sum_{i=1}^n p_i x_i \leq m .$$

经济代写|宏观经济学代考Macroeconomics代写|Structure of the Ramsey Problem

The government announces a sequence of excise tax rates $\left{\tau_t\right}_{t=0}^{\infty}$, which households take as given in making their decisions about consumption, borrowing and saving. This is actually quite a strong assumption, when you stop to think about it. The government has committed to a sequence of actions, when deviation might help it raise more revenue. What mechanism does a sovereign government have to enforce its commitment? Policies change, heads of state topple and constitutions are rewritten every year. Quite a bit of extremely interesting research centers on how governments ought to behave when they cannot credibly commit to a policy and all the agents in the model know it. See Chapter 19 for a discussion of commitment in the context of a Ramsey problem in monetary policy. In that chapter we introduce the game-theoretic concepts required to model the strategic interactions of the private sector and the government.

So our benevolent government will take the purchasing behavior of its citizens (in the form a representative household) in response to its announced set of taxes $\left{\tau_t\right}_{t=0}^{\infty}$ as given. It will seek to raise some exogenous, known, amount of money sufficient, in present-value terms, to pay for the stream of real government expenditures on goods and services, $\left{G_t\right}_{t=0}^{\infty}$. These expenditures will not affect the representative household’s utility or output in a meaningful way: they will be used to fight a war, or, more succinctly, thrown into the ocean. Many sequences of taxes will pay for the government’s stream of purchases. Our government will choose among them by finding the tax sequence that maximizes the representative household’s indirect utility.

宏观经济学代写

经济代写|宏观经济学代考Macroeconomics代写|Preliminaries for the Ramsey Prob

left 缺少或无法识别的分隔符，以及相关的价格向量
\left 缺少或无法识别的分隔符，而一个消費者有 $m$ 花在这些商品上的总美元数，她的预算 约束将是:
$$\sum_{i=1}^n p_i x_i \leq m$$

经济代写|宏观经济学代考Macroeconomics代写|Structure of the Ramsey Problem

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