Chugh, Sanjay K.; Lechthaler, Wolfgang; Merkl, Christian - 2018 - This Draft: June 11, 2018
non-Ramsey decentralized equilibrium, labor market volatility is inefficient. Keeping fixed the structural parameters, the … Ramsey government achieves efficient labor market volatility; doing so requires labor-income tax volatility that is orders of … order to understand optimal tax volatility. …