Warehouse / Authors

S. Rao Aiyagari

Professor of Economics (deceased 1997) · University of Rochester

Macroeconomist (deceased 1997) who worked on macroeconomics, monetary theory and intertemporal general equilibrium theory. He was a research officer at the Federal Reserve Bank of Minneapolis before joining the University of Rochester faculty in 1996.

2 papers tracked 2 classics ⌁ Follow this author

Showing 2 papers

Published Classic Journal of Political Economy Published Dec 1995

Optimal Capital Income Taxation with Incomplete Markets, Borrowing Constraints, and Constant Discounting

S. Rao Aiyagari

Against Chamley's (1986) and Lucas's (1990) result that the optimal long-run capital income tax is zero, this paper shows that in a Bewley-type incomplete-markets economy with uninsured idiosyncratic …

Heterogeneous Agent Macro Free Read ↗

Published Classic Quarterly Journal of Economics Published Aug 1994

Uninsured Idiosyncratic Risk and Aggregate Saving

S. Rao Aiyagari

This paper builds the standard growth model modified so that a continuum of infinitely-lived agents face uninsured idiosyncratic labor-income risk and a borrowing constraint, and shows that the …

Heterogeneous Agent Macro Free Read ↗