income. Linking individuals to their parents, we also investigate the intergenerational transmission of income dynamics. We … find that children of high-income, highwealth fathers enjoy steeper income growth over the life cycle and face more … volatile but more positively skewed income changes, suggesting that they are more likely to pursue high-return, high …

reduce the tax rate on capital income. The third model introduces differential rates of return to capitals of different sizes …

How much of income inequality is due to initial opportunities relative to adult income risk? What factors determine … transfers. Fertility rates, which are higher for low-income than high-income families, are associated with differences in the … transfers, we extend the standard heterogeneous agent life-cycle model with idiosyncratic income shocks and incomplete markets …