Gottardi, Piero; Kajii, Atsushi; Nakajima, Tomoyuki - Federal Reserve Bank of Atlanta - 2014
When individuals' labor and capital income are subject to uninsurable idiosyncratic risks, should capital and labor be taxed, and if so, how? In a two-period general equilibrium model with production, we derive a decomposition formula of the welfare effects of these taxes into insurance and...