production. We demonstrate that the presence of labor income risk unambiguously is an important determinant of long-run expected …

Estimates of the elasticity of taxable income (ETI) is conventionally obtained by "stacking" three-year overlapping … should rather estimate the ETI by a dynamic panel data model. When using Norwegian income tax return data for wage earners …, compared to 0.11 for the conventional approach. Importantly, the conventional approach fails to render a long-term elasticity …

income stream seems impossible to find in closed form and very difficult to find using numerical solution techniques. We … implement the strategy in a simple setting with constant interest rates, a single risky asset, and an exogenously given income … stochastic interest rates, and to endogenous labor supply decisions. -- Optimal consumption and investment ; labor income …