result in income or health gains …

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 … that the optimal steady state saving rate is increasing in income risk if and only if the intertemporal elasticity of …

and agriculture), and an increase in profit. But this increase in profit was offset by a reduction in income from casual … labor, so overall there was no gain in measured income or consumption. We find suggestive evidence that these results are …

In this paper we argue that very high marginal labor income tax rates are an effective tool for social insurance even …

Using data from the Panel Study of Income Dynamics (PSID) we specify, estimate and simulate a dynamic structural model … how consumer behavior responds to house price and income declines as well as tightening credit. These experiments are … motivated by the U.S. recession starting in December of 2007 that saw large falls in home prices, large negative income shocks …