Endogenous time preference and public policy: Growth and fiscal implications

Copyright @ 2010 Cambridge University Press. This is the author's accepted manuscript. The final published article is available from the link below.This article has been made available through the Brunel Open Access Publishing Fund.This paper studies the growth and fiscal policy implications of the assumption that public policy generates an externality in the individual rate of time preference through the aggregate public capital stock. We examine the competitive equilibrium properties and we solve for endogenous growth–maximizing fiscal policy. We investigate the behavior of the government size and the growth rate to the sensitivity of time preference to public capital and the magnitude of public capital externality on production. We find that the Barro taxation rule [Barro, Robert J., Journal of Political Economy 98 (1990), 103–125], which states that the elasticity of public capital in the production function should equal the government size, is suboptimal. We show that the government does not necessarily have to increase income taxation following a rise in public capital intensity because of the externality of public capital on time preference and, in turn, on growth and the tax base of the economy

Observation of Conduction Band Satellite of Ni Metal by 3p-3d Resonant Inverse Photoemission Study

Resonant inverse photoemission spectra of Ni metal have been obtained across the Ni 3$p$ absorption edge. The intensity of Ni 3$d$ band just above Fermi edge shows asymmetric Fano-like resonance. Satellite structures are found at about 2.5 and 4.2 eV above Fermi edge, which show resonant enhancement at the absorption edge. The satellite structures are due to a many-body configuration interaction and confirms the existence of 3$d^8$ configuration in the ground state of Ni metal.Comment: 4 pages, 3 figures, submitted to Physical Review Letter