This paper reformulates perturbation approximation of heterogeneous-agent models as the problem of finding directional derivatives that solve small, analytically-characterized linear systems -- a …
PublishedQuarterly Journal of EconomicsOnline 27 May 2025Published Jul 2025
What is the optimal joint nonlinear earnings tax schedule for married couples? How should one spouse's marginal tax rate depend on the other's earnings? When is individual earnings-based (separable) …