This paper presents a full characterization of the equilibrium value set of a Ramsey tax model. More generally, it develops a dynamic programming method for a class of policy games between the government and a continuum of consumers. By selectively incorporating Euler conditions into a strategic dynamic programming framework, we wed two technologies that are usually considered competing alternatives, resulting in a dramatic simplification of the problem.
Published in: _Econometrica_ (Vol. 69, No. 6, November 2001, pp. 1491-1518), https://doi.org/10.1111/1468-0262.00255
[Older version](https://doi.org/10.21034/sr.258 "older version")
[Data file](https://researchdatabase.minneapolisfed.org/downloads/jd472w48n "Data file")