This paper analyzes the effectiveness of a tax on inflation policy (TIP)—a fiscal instrument that would require firms to pay a tax proportional to the increase in their prices—as a complement to …
PublishedAmerican Economic ReviewOnline 1 May 2026Published May 2026
Can income tax schedules be justified as utilitarian-optimal without adopting extreme normative assumptions about how household welfare should be measured? The paper proposes a welfare criterion …
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 …
Using a new sequence-space method for characterizing the long-run ("Ramsey") steady state of dynamic optimal-taxation problems, this paper finds that for standard calibrations of Aiyagari (1995)-style …
PublishedAmerican Economic ReviewOnline 1 Jan 2026Published Jan 2026
This paper asks whether and how optimal income taxation should change when firms have market power. The question is motivated by the documented rise in economy-wide markups since 1980, which has …
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) …
This paper proves that the "interior" Ramsey steady state routinely assumed in heterogeneous-agent optimal-taxation models -- with a modified-golden-rule interest rate and a positive capital tax, as …