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In this book Peter Diamond analyzes social security as a particular example of optimal taxation theory. Assuming a … these models, Diamond presents introductions to optimal income tax theory and the theory of incomplete markets. He …
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The first chapter of this dissertation, coauthored with Martin Eichenbaum and Riccardo Bianchi-Vimercati, addresses the question: how sensitive is the power of fiscal policy at the ZLB to the assumption of rational expectations? We do so through the lens of a standard NK model in which people...
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