Krueger, Dirk - In: CESifo economic studies : CESifo, a joint initiative of … 52 (2006) 4, pp. 587-620
In this article, I discuss the role a progressive income tax system and a redistributive pay as you go (PAYGO) social security system can play in insuring and reallocating idiosyncratic as well as aggregate risk. I also argue that the underlying source of market failures generating such a role...