Chugh, Sanjay K.; Lechthaler, Wolfgang; Merkl, Christian - In: Journal of Economic Dynamics and Control 94 (2018), pp. 142-189
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. …