MA course at the University of Bern.
Main contents of lectures:
- Concepts. RA model with government spending and taxes.
- RA model: Equilibrium with lump sum or distorting taxes.
- Government debt in RA model.
- Government debt and social security in OLG model.
- Consolidated government budget constraint [2 lectures].
- Neutrality results in CIA model.
- Game of chicken. FTPL. Active and passive policies.
- Tax smoothing (Barro 1979).
- Tax smoothing (Lucas and Stokey 1983) [2 lectures].
- Time consistent tax policy (Lucas and Stokey 1983).
- Time consistent debt policy: Sovereign debt.
- Time consistent monetary policy (Barro and Gordon 1983) [time permitting].