Krusell, Per; Mukoyama, Toshihiko; Rogerson, Richard; … - In: Journal of Monetary Economics 55 (2008) 5, pp. 961-979
We study the impact of tax and transfer programs on steady-state allocations in a model with search frictions, an operative labor supply margin, and incomplete markets. In a benchmark model that has indivisible labor and incomplete markets but no trading frictions we show that the aggregate...