We study the effect of lower unearned income on labor supply. To identify the causal effect of an unexpected reduction … in unearned income, we exploit a policy reform that lowered survivor pensions in Austria. Men widowed after the survivor … to a labor supply elasticity at the extensive margin with respect to the changes in total income of about –0.9 to –1.3 …

uninsured capital income risk, and suffer from an information-processing capacity constraint. For given attention devoted to … capital income risk, we solve for the optimal consumption-saving choices and show that the expected welfare is increasing with … households would pay more attention to capital income risk if they have (i) lower initial wealth endowment, (ii) lower marginal …

intergenerational welfare, the evolution of GDP, and the functional income distribution. A stabilization policy can shift the economy …

This paper studies optimal non-linear income taxation in a model with labor supply responses at the intensive (hours …, effort) and extensive (participation) margins. It shows that an Earned Income Tax Credit (EITC) with negative marginal taxes … along the income distribution and, second, social concerns for redistribution from the poor to the very poor are …

respects: income-earning ability and rationality. Publicly provided goods should be overprovided or subsidised, relative to the … self-selection constraints, formulated in a new way. Optimal marginal income tax rates are shown to differ from the …

the analysis of reforms toward individual taxation. We study the US federal income tax since the 1960s through the lens of …