We analyze the implications of the decline in labor’s share in national income for optimal Ramsey taxation. It is optimal to accompany the decline in labor share by raising capital taxes only if the labor share is falling because of a decline in competition or other mechanisms that raise the...

We analyze the implications of the decline in labor’s share in national income for optimal Ramsey taxation. It is optimal to accompany the decline in labor share by raising capital taxes only if the labor share is falling because of a decline in competition or other mechanisms that raise the...

We study the aggregate and distributional consequences of replacing corporate profit taxes with shareholder taxes, namely taxes on dividends and capital gains, in a setting with incomplete markets and heterogeneity at both the household and the firm level. The reform yields distributional gains...

In this paper, we aim to contribute to the growth literature by presenting evidence that the presence of an informal sector might significantly affect both the level as well as the course of the total factor productivity (TFP). To this end, we develop a framework where we can compare the TFP in...

In this paper, we investigate the evolution of the informal sector through structural transformation. We develop both a three-sector and a five-sector dynamic general equilibrium (DGE) model, which can simultaneously account for structural transformation between agriculture, industry and...

In the United States, the residential housing market went through important changes over the period of the 1970s to the mid-1990s. Although the aggregate homeownership rate was relatively constant during that period, the distribution of homeownership rates by age changed in remarkable ways....