estimate the purchasing power parity (PPP) bias in Penn World Table incomes and provide corrected incomes. The bias is … substantial and systematic: the poorer a country, the more its income tends to be overestimated. Consequently, international … income inequality is substantially underestimated. Our methodological contribution is to exploit the analogies between PPP …

social outcomes are not well understood. We develop a novel index of ethnic segregation that takes both ethnic and spatial … distances between individuals into account. Importantly, we can decompose this index into indices of spatial dispersion …

We formulate a simple theoretical model of a banking industry that we use to identify and construct theory …

and the monthly consumer price index …

We explore the relationships between subjective well-being and income, as seen across individuals within a given … most countries around the world. Turning to the relationship between countries, we show that average life satisfaction is … higher in countries with greater GDP per capita. The magnitude of the satisfaction-income gradient is roughly the same …

their lives. Much of the early research concluded that the role of income in determining well-being was limited, and that … only income relative to others was related to well-being. In this paper, we review the evidence to assess the importance of … absolute and relative income in determining well-being. Our research suggests that absolute income plays a major role in …

The public finance literature has modeled income shifting as a decision along the intensive margin even though it … margin has crucial policy implications: the classical distinction between income creation and income shifting breaks down. We … supply elasticities, and costs of income shifting. In the most empirically plausible scenario when people who shift easily …

We analyze optimal taxation of labor and capital income in a life-cycle framework with idiosyncratic income risk. We … provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is … independent of the social welfare function and determined by the degree of income risk and risk aversion. The optimal linear …