This paper is the first of its kind to study utility interdependence in marriage using information on subjective well-being of a large sample of people living in the UK over the period 1991-2001. Using “residual” self-rated health to provide instrument for spouse’s well-being and allowing...

The causes of people’s political attitudes are largely unknown. We study this issue by exploiting longitudinal data on lottery winners. Comparing people before and after a lottery windfall, we show that winners tend to switch towards support for a right-wing political party and to become less...

This paper characterizes optimal income taxation when individuals respond along both theintensive and extensive margins. Individuals are heterogeneous across two dimensions:specifically, their skill and disutility of participation. Preferences over consumption and workeffort can differ with...