《a game theoretic view of the fiscal theory of the price level》.pdf

A Game-Theoretic View of the Fiscal Theory of the Price Level Author(s): Marco Bassetto Source: Econometrica, Vol. 70, No. 6 (Nov., 2002), pp. 2167-2195 Published by: The Econometric Society Stable URL: /stable/3081984 . Accessed: 14/04/2011 07:00 Your use of the JSTOR archive indicates your acceptance of JSTORs Terms and Conditions of Use, available at . /page/info/about/policies/terms.jsp. JSTORs Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at . /action/showPublisher?publisherCode=econosoc. . Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@. The Econometric Society is collaborating with JSTOR to digitize, preserve and extend access to Econometrica. Econometrica, Vol. 70, No. 6 (November, 2002), 2167-2195 A GAME-THEORETIC VIEW OF THE FISCAL THEORY OF THE PRICE LEVEL BY MARCO BASSETTO1 The goal of this paper is to probe the validity of the fiscal theory of the price level by modelling explicitly the market structure in which households and the government make their decisions. I describe the economy as a game, and I am thu