Insurance and taxation over the life cycle

Review of Economic Studies

Volumn 80, Issue 2, 2013, Pages 596-635

  Farhi, Emmanuel ^a   Werning, Iva ́n ^b  

^a HARVARD UNIVERSITY   (United States)

^b MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

Author keywords

Optimal taxation

Indexed keywords

CONSUMPTION BEHAVIOR; COVARIANCE ANALYSIS; INCOME; INNOVATION; INSURANCE SYSTEM; LIFE CYCLE ANALYSIS; MARKOV CHAIN; SAVINGS; TAX SYSTEM;

EID: 84877084209     PISSN: 00346527     EISSN: 1467937X     Source Type: Journal    
DOI: 10.1093/restud/rds048     Document Type: Article

References (42)

1. ABRAHAM, A. and PAVONI, N. (2008), "Efficient Allocations with Moral Hazard and Hidden Borrowing and Lending: A Recursive Formulation", Review of Economic Dynamics, 11, 781-803.
2. AIYAGARI, S. R., MARCET, A., SARGENT, T. J. and SEPPALA, J. (2002), "Optimal Taxation without State-Contingent Debt", Journal of Political Economy, 110, 1220-1254.
3. ALBANESI, S. and SLEET, C. (2006), "Dynamic Optimal Taxation with Private Information", Review of Economic Studies, 73, 1-30.
4. ALES, L. and MAZIERO, P. (2009), "Accounting for Private Information" (Mimeo).
5. ATKINSON, A. and STIGLITZ, J. (1976), "The Design of Tax Structure: Direct vs. Indirect Taxation", Journal of Public Economics, 6, 55-75.
6. BARRO, R. J. (1979), "On the Determination of the Public Debt", Journal of Political Economy, 87, 940-971.
7. BATTAGLINI, M. (2005), "Long-Term Contracting with Markovian Consumers", American Economic Review, 95, 637-658.
8. BATTAGLINI, M. and COATE, S. (2008), "Pareto Efficient Income Taxation with Stochastic Abilities", Journal of Public Economics, 92, 844-868.
9. CONESA, J. C., KITAO, S. and KRUEGER, D. (2009), "Taxing Capital? Not a Bad Idea after All!", American Economic Review, 99, 25-48.
10. DIAMOND, P. A. (1998), "Optimal Income Taxation: An Example with a U-Shaped Pattern of Optimal Marginal Tax Rates", American Economic Review, 88, 83-95.
11. DIAMOND, P. A. and MIRRLEES, J. A. (1978), "A Model of Social Insurance with Variable Retirement", Journal of Public Economics, 10, 295-336.
12. EROSA, A. and GERVAIS, M. (2002), "Optimal Taxation in Life-Cycle Economies", Journal of Economic Theory, 105, 338-369.
13. FARHI, E. and WERNING, I. (2008a), "Optimal Savings Distortions with Recursive Preferences", Journal of Monetary Economics, 55, 21-42.
14. FARHI, E. and WERNING, I. (2008b), "The Political Economy of Non-Linear Capital Taxation" (Mimeo).
15. FARHI, E. and WERNING, I. (2009), "Capital Taxation: Quantitative Explorations of the Inverse Euler Equation" (Mimeo).
16. FERNANDES, A. and PHELAN, C. (2000), "A Recursive Formulation for Repeated Agency with History Dependence", Journal of Economic Theory, 91, 223-247.
17. FUKUSHIMA, K. (2010), "Quantifying theWelfare Gains from SImple Tax Systems" (Mimeo).
18. GARRETT, D. and PAVAN, A. (2010), "Dynamic Managerial Compensation:AMechanism Design Approach" (Mimeo).
19. GOLOSOV, M., KOCHERLAKOTA, N. and TSYVINSKI, A. (2003), "Optimal Indirect and Capital Taxation", Review of Economic Studies, 70, 569-587.
20. GOLOSOV, M., TROSHKIN, M. and TSYVINSKI, A. (2010), "Optimal Dynamic Taxes" (Mimeo).
21. GOLOSOV, M. and TSYVINSKI, A. (2006), "Designing Optimal Disability Insurance:ACase for AssetTesting", Journal of Political Economy, 114, 257-279.
22. GOLOSOV, M., TSYVINSKI, A. and WERNING, I. (2006), "New Dynamic Public Finance: A User's Guide", NBER Macroeconomics Annual 2006, forthcoming.
23. HEATHCOTE, J., PERRI, F. and VIOLANTE, G. L. (2010), "Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States: 1967-2006", Review of Economic Dynamics, 13, 15-51.
24. HEATHCOTE, J., STORESLETTEN, K. and VIOLANTE, G. L. (2005), "Two Views of Inequality Over the Life Cycle", Journal of the European Economic Association, 3, 765-775.
25. JARQUE, A. (2008), "Repeated Moral Hazard with Effort Persistence" (Mimeo).
26. KAPICKA, M. (2008), "Efficient Allocation in Dynamic Private Information Economies with Persistent Shocks: A First-Order Approach" (Mimeo).
27. KOCHERLAKOTA, N. (2004), "Figuring out the Impact of Hidden Savings on Optimal Unemployment Insurance", Review of Economic Dynamics, 7, 541-554.
28. KREMER, M. (2002), "Should Taxes be Independent of Age" (Mimeo).
29. LUCAS, R. J. and STOKEY, N. L. (1983), "Optimal Fiscal and Monetary Policy in an Economy without Capital", Journal of Monetary Economics, 12, 55-93.
30. MILGROM, P. and SEGAL, I. (2002), "Envelope Theorems for Arbitrary Choice Sets", Econometrica, 70, 583-601.
31. MIRRLEES, J. (1971), "An Exploration in the Theory of Optimum Income Taxation", Review of Economic Studies, 38, 175-208.
32. PAVAN, A., SEGAL, I. and TOIKKA, J. (2009), "Dynamic Mechanism Design: Incentive Compatibility, Profit Maximization, and Infomation Disclosure" (Mimeo).
33. SAEZ, E. (2001), "Using Elasticities to Derive Optimal Income Tax Rates", Review of Economic Studies, 68, 205-229.
34. SAEZ, E. (2002), "The Desirability of Commodity Taxation under Non-Linear Income Taxation and Heterogeneous Tastes", Journal of Public Economics, 83, 217-230.
35. SHIMER, R. and WERNING, I. (2008), "Liquidity and Insurance for the Unemployed", American Economic Review, 98, 1922-1942.
36. STORESLETTEN, K., TELMER, C. I. and YARON, A. (2004), "Consumption and Risk Sharing over the Life Cycle", Journal of Monetary Economics, 51, 609-633.
37. TCHISTYI, A. (2006), "Security Design with Correlated Hidden Cash-Flows: The Optimality of Performance Pricing" (Mimeo).
38. WEINZIERL, M. (2008), "The Surprising Power of Age-Dependent Taxes" (Mimeo).
39. WERNING, I. (2002), "Optimal Unemployment Insurance with Unobservable Savings" (Mimeo).
40. WERNING, I. (2007a), "Optimal Fiscal Policy with Redistribution", Quarterly Journal of Economics, 122, 925-967.
41. WERNING, I. (2007b), "Pareto Efficient Income Taxation" (Mimeo).
42. WILLIAMS, N. (2008), "Persistent Private Information" (Mimeo).