We present a comprehensive multi-scale test of the diversity-deficit hypothesis that posits a negative association between diversity and development. We develop a "scale-flip hypothesis" that formalizes how the political salience of diversity is contingent on the level of analysis. We also...

We ask: what are the most efficient means of redistribution in an unequal society? We answer this question by characterizing the optimal shape of non-linear income and wealth taxes in a dynamic general equilibrium model with uninsurable idiosyncratic risk. Our analysis reproduces the...

We offer a new explanation for why taxes have become less progressive in many countries in parallel with an increase in income inequality. When performance-based compensation differentials are needed to incentivize effort, redistribution through progressive income taxes becomes less precisely...