This paper has been prepared for a forthcoming volume of the Handbook of Public Economics, (2007)
Alan J. Auerbach, James R. Hines, Kenneth Judd, Louis Kaplow, Gareth Myles, Michel Strawczynski, ...
helpful comments on a previous draft. Taxation and Economic Efficiency This paper analyzes the distortions created by taxation and the features of tax systems that minimize such distortions (subject...
2 Optimal Taxation without State-Contingent Debt (2007)
Albert Marcet, Thomas J. Sargent, Kenneth Judd, Martin Schneider, Nancy Stokey
To recover a version of Barro's (1979) `random walk ' tax smoothing outcome, we modify Lucas and Stokey's (1983) economy to permit only risk-free debt. This imparts near unit root like...
Daniel Hojman, Adam Szeidl, Sanjeev Goyal, Kenneth Judd, Larry Katz, Markus Mobius, ...
Many economic and social networks share two common organizing features: (1) a core-periphery structure; (2) positive correlation between network centrality and payo¤s. In this paper, we build a...
Optimal Fiscal Policy in a Business Cycle Model without Commitment ∗ (2002)
Jesús Fernández-villaverde, Aleh Tsyvinski, Kenneth Judd, Narayana Kocherlakota, Chris Phelan, ...
This paper studies optimal taxation in the stochastic growh model when the goverment cannot commit. We use recursive game theory to characterize the set of Sustainable Equilibria and to build...
Optimal Taxation without State-Contingent Debt (2000)
Albert Marcet, Thomas J. Sargent, Juha Seppälä, Thank Lars Hansen, V. V. Chari, Darrell Due, ...
In Lucas and Stokey's (1983) economy, tax rates inherit the serial correlation structure of government expenditures, belying Barro's (1979) result that taxes should be a random walk for any...
Optimal Taxation without State-Contingent Debt (2000)
Albert Marcet, Thomas J. Sargent, Juha Seppälä, Kenneth Judd, Martin Schneider, ...
To recover a version of Barro's (1979) `random walk' tax smoothing outcome, we modify Lucas and Stokey's (1983) economy to permit only risk-free debt. This imparts near unit root like...
Efficiency of Asset Markets with Asymmetric Information (1997)
Bernardo, Antonio, Judd, Kenneth
We examine the welfare effects of costly information acquistion in a version of the Grossman-Stiglitz (1980) exchange economy in which all traders are fully rational. We find, as emphasized by...
Lawrence J. Christian, Lawrence J. Christiano, Wouter Den Haan, Kenneth Judd, ...
the Federal Reserve Bank of Chicago. Jonas D.M. Fisher is
O curse of dimensionality, where is thy sting?
Economic analysis often leads to multidimensional numerical problems. The {\em Curse of Dimensionality\/} often leads researchers to adopt methods designed for very high-dimension problems, but...
Optimal Rules for Patent Races
Kenneth Judd, Karl Schmedders, Sevin Yeltekin
There are two important rules in a patent race: what an innovator must accomplish to receive the patent and the allocation of the benefits that flow from the innovation. Most patent races end before...
Handbook of Computational Economics II: Agent-Based Computational Economics
Judd, Kenneth, Tesfatsion, Leigh, Contributors, Other
A modern market-based economy is an example of a complex adaptive system, consisting of a decentralized collection of autonomous adaptive agents interacting over time in various market contexts....
Handbook of Computational Economics II: Agent-Based Computational Economics
Judd, Kenneth, Tesfatsion, Leigh, Contributors, Other
A modern market-based economy is an example of a complex adaptive system, consisting of a decentralized collection of autonomous adaptive agents interacting over time in various market contexts....
Efficiency of Asset Markets with Asymmetric Information
Antonio Bernardo, Kenneth Judd
We examine the welfare effects of costly information acquistion in a version of the Grossman-Stiglitz (1980) exchange economy in which all traders are fully rational. We find, as emphasized by...
Volume and Price Formation in an Asset Trading Model with Asymmetric Information
Antonio Bernardo, Kenneth Judd
This paper examines how private information affects trading volume, the information content of trading volume data, and if there are any relations between trading volume and price changes which can...
Numerically Stable Stochastic Simulation Approaches for Solving Dynamic Economic Models
Kenneth Judd, Lilia Maliar, Serguei Maliar
We develop numerically stable stochastic simulation approaches for solving dynamic economic models. We rely on standard simulation procedures to simultaneously compute an ergodic distribution of...