how these losses are distributed across households and how they are affected by social insurance policies. We find that … insurance benefits are cut from 50% to 10%. The fact that welfare losses fall with wealth, and that in our model (as in the data … insurance system unequivocally helps low-wealth job losers, but hurts households that keep their job, even in a version of the …

The purpose of the present note is to explore the structure of optimal income taxation/redistribution in an economy …, of course, an additional incentive for income redistribution from wealthy to poor citizens is created and the logical …

This paper studies the optimal redistribution of income inequality in a model with search and matching frictions in the … workers and heterogeneous firms. The optimal redistribution in this model, which is associated with the constrained efficient … unemployment benefit serves the purpose of lowering the search risk faced by workers. The increasing and regressive labor tax …

provided unemployment insurance (UI) and loans against pension accounts changes over time in a model where unemployment may …

innovations that increase ability premiums cause educational inequality to be larger than otherwise. In applying our theory to …This paper develops a theoretical model that relates changes in educational inequality to the combined effects of … existence of ability premiums, an innovation in the relative demand for more educated labor increases educational inequality in …

private insurance is unavailable. primarily because of moral hazard, and demonstrate that some taxation is efficient because … the benefits of mitigating risk exceed incentive costs. This note suggests that private insurance should be considered … insurance. Moreover, in the presence of moral hazard, government insurance, through labor income taxation or otherwise, may be …

compare education to other tax-transfer schemes designed to achieve distributional objectives. While equity-efficiency trade … attendance, labor supply, wage determination, and aggregate production, which is used to compare alternative redistribution … subsidy of education, because it both raises GDP and creates a more equal income distribution …

variability in returns to schooling is forecastable. This has important implications for using measured variability to price risk …

longevity risk, and partially-refundable premiums. Welfare rises since policyholders exercise the product's flexibility by …