Mogstad, Magne; Golosov, Mikhail; Graber, Michael; … - 2021
of lottery wins. Our first contribution is to estimate the earnings responses to these windfall gains, finding …-tax labor earnings by about 50 cents, decreases total labor taxes by 10 cents, and increases consumption by 60 cents. These … reducing their earnings by a larger amount. Our second contribution is to develop and apply a rich life-cycle model in which …