Exercise 9.29. Consider the continuous time perpetual youth model with a constant flow of government spending G. Suppose that this does not affect consumer utility and that lumpsum taxes [T (t)]∞ t=0 are allowed. Specify the government budget constraint as in Exercise 8.19 in Chapter 8. Prove that contrary to the Ricardian Equivalence result in Exercise 8.19, the sequence of taxes affects the equilibrium path of capital-labor ratio and consumption. Interpret this result and explain the difference between the overlapping generations model and the neoclassical growth model.