Gottardi, Piero; Kajii, Atsushi; Nakajima, Tomoyuki - Faculty of Economics, University of Tokyo - 2015
When individuals' labor and capital income are subject to uninsurable idiosyncratic risks, should capital and labor be taxed, and if so how? In a two period general equilibrium model with production, we derive a decomposition formula of the welfare effects of these taxes into insurance and...