Essays in macroeconomics and fiscal policy

Mattia Ricci
This thesis consists of three chapters. The first chapter contributes to the literature on the Laffer curve as a means of measuring the sustainability of public finances. In particular, it proposes to construct Laffer Curves via policy experiments where fiscal policy is set optimally and fiscal instruments are jointly varied along the transition to steady-state. This relation is labelled as an ‘optimal Laffer curve’. It is shown that the tax revenue and welfare gains relative...
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