proportional taxes on labor and capital. I first consider the case that the only asset the government can trade is a real risk … contingent source of revenues. I thus identify a novel potential role for capital taxation as a risk sharing instrument between … ownership provides the same benefit or risk sharing but without the cost of tax distortions. In a variety of quantitative …

This paper develops a theory of optimal taxation with behavioral agents. We use a general behavioral framework that …

expected exchange rate depreciations (appreciations) for high (low) interest rate currencies, suggesting that disaster risk is … priced in currency markets. To study the price of disaster risk, we propose a simple structural model that includes both … Gaussian and disaster risk and can be estimated even in samples that do not contain disasters. Estimating the model over the …

We develop a theory of optimal estate taxation in a model where bequest inequality is driven by differences in parental …

Real risk-free interest rates have trended down over the past 30 years. Puzzlingly in light of this decline, (1) the … that rising market power, rising unmeasured intangibles, and rising risk premia, play a crucial role, over and above the … traditional culprits of increasing savings supply and technological growth slowdown …

deliver some novel insights. The average labor tax rises from 0% to 46% over 40 years, while the average tax on savings falls …