Papers on political economy and optimal taxation
Monetary/Fiscal Interaction with Forty Budget Constraints (joint with Gherardo Caracciolo)
Working Paper, Federal Reserve Bank of Minneapolis, no. 788
A Ramsey Theory of Financial Distortions (joint with Wei Cui)
Journal of Political Economy, 2024, vol. 132, pp. 2612-2654.
An older version is available as Federal Reserve Bank of Minneapolis Staff Report no. 643
Institution Building without Commitment (joint with Zhen Huo and José-Víctor Ríos-Rull)
American Economic Review, forthcoming.
A much older version is available as Organizational Equilibrium with Capital, NBER Working Paper no. 25376
Mobility, Population Growth, and Public Capital Spending in the United States (joint with Leslie McGranahan)
Review of Economic Dynamics, 2021, vol. 41, pp. 255-277. Special issue in honor of Alejandro Justiniano.
A significantly older version is available as NBER Working Paper no. 16970
Shotgun Wedding: Fiscal and Monetary Policy (joint with Thomas J. Sargent)
Annual Review of Economics, 2020, vol. 12, pp.659-690.
Free to download using the link above.
Public Investment and Budget Rules for State vs. Local Governments
Optimal Fiscal Policy with Heterogeneous Agents
Quantitative Economics, 2014, vol. 5, n.3, pp. 675-704. Open access.
Appendix for online publication
Working paper version (contains material that was not included in the published version)
The Research Agenda: Marco Bassetto on the Quantitative Evaluation of Fiscal Policy Rules
Economic Dynamics Newsletter, 2009, vol. 10, n.2. Open access.
Political Economy of Taxation in an Overlapping-Generations Economy
Review of Economic Dynamics, 2008, vol. 11, n.1, pp.18-43.
An earlier version is available as Federal Reserve Bank of Minneapolis Discussion Paper n. 133, 1999.
Government Investment and the European Stability and Growth Pact (joint with Vadym Lepetyuk)
Economic Perspectives, Federal Reserve Bank of Chicago, 2007, vol. 31, n.3, pp.33-43. Open access.
A more complete version is available as NBER Working Paper n. 13200, 2007.
Redistribution, Taxes, and the Median Voter (joint with Jess Benhabib)
Review of Economic Dynamics, 2006, vol.9, n.2, pp.211-223.
An earlier version (with some typos) is available as Working Paper, Federal Reserve Bank of Chicago, 2006 n.2.
Politics and Efficiency of Separating Capital and Ordinary Government Budgets (joint with Thomas J. Sargent)
Quarterly Journal of Economics, 2006, vol. 121, n.4, pp.1167-1210.
An older version is available as NBER Working Paper n. 11030, 2005.
On the Irrelevance of Government Debt when Taxes are Distortionary (joint with Narayana Kocherlakota)
Journal of Monetary Economics, 2004, vol. 51, n.2, pp.299-304.