Macro Public Finance

Lecture 6 · 2026-04-21

A topic in macro public finance, taught through a study of optimal property taxation. We develop methods for solving the steady state and transition path of an overlapping-generations (OLG) model with heterogeneous households, incomplete markets, and endogenous house prices and rents. Embedding a realistic fiscal system of taxes and transfers, the lecture uses numerical experiments to assess the macroeconomic, welfare, and distributional effects of property tax reform under alternative tax rates, exemption schemes, and revenue-substitution scenarios.

Materials

• Lecture deck: Property Tax in an OLG Model (PDF)

Readings

• Conesa, Li & Li (2023), “A Quantitative Evaluation of Universal Basic Income,” Journal of Public Economics 223, 104881.