-specific working-ability shocks and borrowing constraints, and so they differ ex post in both income and wealth. The combination of …-horizon growth model. To show how the model behaves in an application, the paper analyzes a 10 percent reduction in income tax rates …

preferences, and (ii) growth is endogenously sustained through innovations whose market value depends on the tax system. By … reallocating tax distortions through debt, fiscal policy alters both the composition of intertemporal consumption risk and the … incentives to innovate. Tax policies aimed at short-run stabilization may substantially increase long run tax and growth risks …

tax base is relatively unequal and inelastic; (2) an increasing pattern of labor income taxes over time mitigates … remaining third come mostly from insurance; and (5) redistribution also leads to a more efficient allocation of labor via wealth …

risk management. They include a catastrophe tax, the elimination of subsidies for bad risks, reduction of coordination …

A kind of folk theorem in tax policy states that too much uncertainty about the impact of taxing (or subsidizing) a … particular taxable attribute is cause for excluding that attribute from the tax base. I extend the optimal tax model to test this … is as likely to increase as to decrease both the impetus for including potentially taxable attributes in the tax base and …