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

social insurance against idiosyncratic wage risk, but distort the education decision of households. Optimally chosen tertiary …

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 …

household heterogeneity in which uninsurable labor productivity risk gives rise to a nontrivial income and wealth distribution …