Idiosyncratic labor incomes are typically modeled either by stochastic processes with heterogeneous income profiles … (HIPs) or restricted income profiles (RIPs). The HIP assumes that individual labor income grows deterministically at an … unobserved rate and contains a persistent but stationary component, while the RIP assumes that income contains a random walk, a …

a household's earnings or assets, leads to a higher implicit tax on old-age resources, but has desirable distributional … comparable payroll tax cut leads to an across-the-board decline of 2% in the average dollar benefits, despite an increase in …

income, reversals of provisions and deferred losses and increased by endowments to provisions and that of the tax on personal … income is their gross salary. It tells the truth that it is not tax other than the tax on corporate profits, the tax on …The traditional fiscal policy of the nation is multidimensional. The traditional tax rates are variable and the basis …

heterogeneity generated by uninsured income shocks remains minimal. We end the article by arguing that fully incorporating uninsured …

shows a speedy convergence to long run equilibrium. -- wealth effects ; consumption dynamics ; income effect ; convergence …