This paper studies studies the effects of alternative taxation rules when salient demographic features of modern economies are explicitly considered. We build a equilibrium framework in which the formation and dissolution of households, household labor supply decisions at the intensive and...

Online appendix for the Review of Economic Dynamics article

We quantitatively investigate the capacity to collect revenue when the government is constrained to use non-linear (progressive) income taxes. We develop a life-cycle growth model with individual heterogeneity and endogenous labor supply, and explore the degree of tax progressivity that can be...

The existing social security system in the U.S. has a special provision for married households: a married person can choose between own benefits and half of the spouse's benefits. Another feature of the system is the progressive calculation of benefits: benefits are determined by a concave...