We analyze optimal taxation of labor and capital income in a life-cycle framework with idiosyncratic income risk. We … provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is … independent of the social welfare function and determined by the degree of income risk and risk aversion. The optimal linear …

We study the treatment effect of grade retention, using a panel of French junior high school students, taking … weakest students. We also show that class size is endogenous and tends to increase with unobserved student ability. The … Average Treatment Effect (ATE) of grade retention is negative, again with the exception of the weakest group of students …