Does Precommitment Raise Growth? The Dynamics of Growth and Fiscal Policy
构建了一个由私人和公共资本外部性驱动的内生增长模型，比较了最优政策与时间一致政策，发现时间一致政策虽非最优，但通过国家资产积累和削减政府消费，能带来更高的长期增长和福利。
We develop an endogenous growth model driven by externalities from both private and public capital. The government levies distortionary taxation to finance a publicly provided consumption good and public infrastructure. Firms face adjustment costs. We compare the optimal and time‐consistent policies in a linear‐quadratic approximation of the model. Although the time‐consistent equilibrium is sub‐optimal in terms of ex‐ante intertemporal welfare, it yields higher long‐run growth and welfare, through an accumulation of assets by the state and a cut in government consumption.