Microsimulation models have been particularly useful when dealing with the economic welfare impact of COVID-19, particularly since such models offer a way to obtain timely and policy-relevant information in the absence of detailed household-level survey data. This study uses EUROMOD, a static...

This paper asks whether tax cycles can represent the optimal policy in a model without any extrinsic uncertainty. I show, in an economy without capital and where labor is the only choicevariable (a Lucas-Stokey economy), that a large class of preferences exists, where cycles are optimal, as well...

We study the optimal path for capital and labor taxes in a dynamic economy with heterogeneous agents. In an otherwise standard model we concentrate on tax reforms that are both Pareto effcient and Pareto improving. Also, we assume the capital tax rate can never rise above its initial level and...