Most contributions to optimal tax theory have assumed that all prices, including that of leisure, are known with … paper begins with a discussion of the positive theory of wage taxation and labor supply under uncertainty. This is followed …

-household income insurance mechanism strongly biases upward the welfare losses from idiosyncratic wage risk as well as the desired …

countries with insufficiently developed capital markets. This paper analyzes the problem of channeling domestic savings into …

We examine six alternative plans which might be discussed in an effort to increase consumer savings through the … personal income tax system in the United States. These plans attempt to affect savings through an increase in the real rate of … return either by direct tax cuts on savings or by indexing tax rates against inflation. The paper presents estimates of …

facing uninsurable idiosyncratic labor income risk. The Ramsey government internalizes the general equilibrium feedback of … optimal aggregate saving rate is independent of income risk. The optimal time-invariant tax on capital is increasing in income … risk. Its sign depends on the extent of risk and on the Pareto weight of future generations. If the Ramsey tax rate that …

This paper studies Pareto-optimal risk-sharing arrangements in a private information economy with aggregate uncertainty … result can be extended to dynamic settings in the sense that, in this case, only savings need to be distorted, but not trades …

when households have preferences with high labor supply elasticity, make dynamic savings decisions, and policies have … labor productivity risk, show that it has a wealth distribution that matches the data well, and then use it to characterize …

(and the coefficient of relative risk aversion) from regressions of consumption growth on uncertainty in consumption growth … imply estimates of prudence and risk aversion that are unrealistically low. Using numerical solutions to a fairly standard …