We study the role of heterogeneous preferences at the spousal level and that of spousal mutual insurance against wage shocks for couples’ labor supply in a time-use model. We estimate the model for couples in the German Time-Use Survey with Bayesian techniques and generate gender-specific...

Over the last decades, the United States has experienced a large increase in, both, income inequality and living standards. The workhorse models of optimal income taxation call for more redistribution as inequality rises. By contrast, living standards play no role for taxes and transfers in...

We provide a direct test of the role of social preferences and beliefs in voluntary cooperation and its decline. We elicit individuals cooperation preference in one experiment and use them as well as subjects elicited beliefs to make predictions about contributions to a public good played...