This paper studies the welfare costs and the redistributive effects of inflation in the presence of idiosyncratic … degree of market incompleteness. We show that in the presence of imperfect insurance the estimated long-run welfare costs of … important redistributive effects across households. For example, the welfare gains of reducing inflation from 10% to 0% is 0 …

observations per contract period is large relative to the sample size, standard GMM asymptotic theory provides unreliable …

This paper studies the capital accumulation and welfare implications of reducing capital income taxation in a general … rate increases the capital stock and leads to a welfare gain. The complete elimination of the capital income tax, however …, is not necessarily welfare improving. …