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Farhi, Emmanuel - 2015

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

Persistent link: https://www.econbiz.de/10013016014

Estate Taxation with Altruism Heterogeneity

Farhi, Emmanuel - 2013

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

Persistent link: https://www.econbiz.de/10013087049

Progressive Estate Taxation

Farhi, Emmanuel - 2007

For an economy with altruistic parents facing productivity shocks, the optimal estate taxation is progressive: fortunate parents should face lower net returns on their inheritances. This progressivity reflects optimal mean reversion in consumption, which ensures that a long-run steady state...

Persistent link: https://www.econbiz.de/10012778251

Crash Risk in Currency Markets

Farhi, Emmanuel - 2010

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 …

Persistent link: https://www.econbiz.de/10013152552

Accounting for Macro-Finance Trends : Market Power, Intangibles, and Risk Premia

Farhi, Emmanuel - 2018

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 …

Persistent link: https://www.econbiz.de/10012907462

Safe Asset Scarcity and Aggregate Demand

Caballero, Ricardo J. - 2016

We explore the consequences of safe asset scarcity on aggregate demand in a stylized IS-LM/Mundell Fleming environment. Acute safe asset scarcity forces the economy into a “safety trap” recession. In the open economy, safe asset scarcity spreads from one country to the other via capital...

Persistent link: https://www.econbiz.de/10012997884

Macroeconomics with Heterogeneous Agents and Input-Output Networks

Baqaee, David Rezza - 2018

The goal of this paper is to simultaneously unbundle two interacting reduced-form building blocks of traditional macroeconomic models: the representative agent and the aggregate production function. We introduce a broad class of disaggregated general equilibrium models with Heterogeneous Agents...

Persistent link: https://www.econbiz.de/10012916627

The Macroeconomics of Border Taxes

Barbiero, Omar - 2018

We analyze the dynamic macroeconomic effects of border adjustment taxes, both when they are a feature of corporate tax reform (C-BAT) and for the case of value added taxes (VAT). Our analysis arrives at the following main conclusions. First, C-BAT is unlikely to be neutral at the macroeconomic...

Persistent link: https://www.econbiz.de/10012917034

A Short Note on Aggregating Productivity

Baqaee, David - 2019

This paper discusses two simple decompositions for aggregate productivity analysis in the presence of distortions and in general equilibrium. The first is a generalization of Baqaee and Farhi (2017) and the second is due to Petrin and Levinsohn (2012). In the process, we propose a new...

Persistent link: https://www.econbiz.de/10012889959

Inequality, Social Discounting and Estate Taxation

Farhi, Emmanuel; Werning, Iván - 2021

To what degree should societies allow inequality to be inherited? What role should estate taxation play in shaping the intergenerational transmission of welfare? We explore these questions by modeling altruistically-linked individuals who experience privately observed taste or productivity...

Persistent link: https://www.econbiz.de/10013243965