Optimal Stabilization Policy in the Presence of Learning by Doing

Philippe Martin and Carol Ann Rogers
Additional contact information
Carol Ann Rogers: GU - Georgetown University [Washington]

Post-Print from HAL

Abstract: This paper analyses the optimal stabilization policy when growth is driven by learning by doing. If benefits of learning by doing are not fully internalized, the optimal policy is to tax labor during expansions and to subsidize it during recessions. The long-term impact of this policy depends critically on initial conditions: If stabilization starts during an expansion, it has a positive effect on long-term production. When stabilization starts during a recession, its long-term effect is negative. The paper makes a methodological contribution in its analytical derivation of the optimal policy along the transition path as well as in the steady state.

Date: 2000-04
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Published in Journal of Public Economic Theory, 2000, 2 (2), pp.213 - 241

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Optimal Stabilization Policy in the Presence of Learning by Doing (2000)
Working Paper: Optimal Stabilization Policy in the Presence of Learning by Doing (1995)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03471623

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().