We consider the implications for optimal fiscal policy when taxes are non-distortionary and households are heterogeneous and borrowing constrained. The main result is that optimal policy keeps some households borrowing constrained in order to reduce interest rates on government debt.
Azzimonti, Marina, and Pierre Yared. "A Note on Optimal Fiscal Policy in an Economy with Private Borrowing Limits." Economics Letters 151 (February 2017): 62-65.
Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.
Each topic is linked to an index of publications on that topic.