Search Results
Showing results 1 to 10 of approximately 90.
(refine search)
Working Paper
A Quantitative Theory of Time-Consistent Unemployment Insurance
Pei, Yun; Xie, Zoe
(2016-11-01)
During recessions, the U.S. government substantially increases the duration of unemployment insurance (UI) benefits through multiple extensions. This paper seeks to understand the incentives driving these increases. Because of the trade-off between insurance and job search incentives, the classic time-inconsistency problem arises. During recessions, the U.S. government substantially increases the duration of unemployment insurance (UI) benefits through multiple extensions. This paper seeks to understand the incentives driving these extensions. Because of the trade-off between insurance and ...
FRB Atlanta Working Paper
, Paper 2016-11
Working Paper
Optimal Dynamic Tax-Transfer Policies in Heterogeneous-Agents Economies
Chien, YiLi; Wen, Yi
(2023-05-01)
In the design of an optimal tax-transfer system, there are two complementary conventional wisdoms: the labor-efficiency argument and the debt-efficiency argument. The former emphasizes the trade-off between redistribution and distortions in the labor market, while the latter emphasizes the trade-off between gains from monopoly rents and distortions in the asset market. We use an analytically tractable infinite-horizon model with both ex-ante and ex-post heterogeneity to show that neither argument is complete in the design of the tax-transfer system. Instead, in Aiyagari-type models the ...
Working Papers
, Paper 2023-009
Working Paper
The Distributional Effects of a Carbon Tax on Current and Future Generations
Fried, Stephie; Peterman, William B.; Novan, Kevin
(2016-04-20)
This paper examines the non-environmental welfare effects of introducing a revenue- neutral carbon tax policy. Using a life cycle model, we find that the welfare effects of the policy differ substantially for agents who are alive when the policy is enacted compared to those who are born into the new steady state with the carbon tax in place. Consistent with previous studies, we demonstrate that, for those born in the new steady state, the welfare costs are always lower when the carbon tax revenue is used to reduce an existing distortionary tax as opposed to being returned in the form of ...
Finance and Economics Discussion Series
, Paper 2016-038
Working Paper
Optimal time-consistent government debt maturity
Debortoli, Davide; Yared, Pierre; Nunes, Ricardo
(2016-05-17)
The current literature on a government's optimal debt maturity structure contends that by purchasing short-term assets and selling long-term debt, it is possible to fully insulate the economy against fiscal shocks. The required short and long positions are large relative to GDP and constant. The market value of debt adjusts automatically and the constant debt positions and fluctuating bond prices insulate against potential shocks. However, achieving the goal of averting future shocks depends on the government perfectly committing to the future fiscal policy, for without this sustained ...
Working Papers
, Paper 16-4
Working Paper
Don’t Tax Capital — Optimal Ramsey Taxation in Heterogeneous Agent Economies with Quasi-Linear Preferences
Chien, YiLi; Wen, Yi
(2019-02-22)
We build a tractable heterogeneous-agent incomplete-markets model with quasi-linear preferences to address a set of long-standing issues in the optimal Ramsey taxation literature. The tractability of our model enables us to analytically prove the existence of a Ramsey steady state and establish several novel results (i) Depending on the government's capacity to issue debt, there can exist different types of Ramsey steady states but they have the same implications for optimal long-run tax policies. (ii) The optimal capital tax is exclusively zero in a Ramsey steady state regardless of the ...
Working Papers
, Paper 2019-7
Working Paper
Optimal Social Insurance and Rising Labor Market Risk
Scheffel, Martin; Krebs, Tom
(2019-02-01)
This paper analyzes the optimal response of the social insurance system to a rise in labor market risk. To this end, we develop a tractable macroeconomic model with risk-free physical capital, risky human capital (labor market risk) and unobservable effort choice affecting the distribution of human capital shocks (moral hazard). We show that constrained optimal allocations are simple in the sense that they can be found by solving a static social planner problem. We further show that constrained optimal allocations are the equilibrium allocations of a market economy in which the government ...
Opportunity and Inclusive Growth Institute Working Papers
, Paper 18
Working Paper
Optimal Taxes Under Private Information: The Role of the Inflation
Gomis-Porqueras, Pedro; Waller, Christopher J.
(2020-08-20)
We consider an overlapping generation framework with search and private information to study optimal taxation. Agents sequentially trade in markets that are characterized by different frictions and trading protocols. In frictional decentralized markets, agents receive shocks that determine if they are going to be consumers or producers. Shocks are private information. Mechanism design is used to solve for the constrained optimal allocation. We then study whether a government can replicate the constrained optimal allocation with an array of policy instruments including fiat money. We show that ...
Working Papers
, Paper 2017-014
Working Paper
Fiscal Austerity in Ambiguous Times
Ferrière, Axelle; Karantounias, Anastasios G.
(2016-03-01)
This paper analyzes optimal fiscal policy with ambiguity aversion and endogenous government spending. We show that, without ambiguity, optimal surplus-to-output ratios are acyclical and that there is no rationale for either reduction or further accumulation of public debt. In contrast, ambiguity about the cycle can generate optimally policies that resemble "austerity" measures. Optimal policy prescribes higher taxes in adverse times and front-loaded fiscal consolidations that lead to a balanced primary budget in the long-run. This is the case when interest rates are sufficiently responsive ...
FRB Atlanta Working Paper
, Paper 2016-6
Working Paper
Should Capital Be Taxed?
Chien, YiLi; Wen, Yi; Chen, Yunmin; Yang, C.C.
(2020-12-10)
We design an infinite-horizon heterogeneous-agents and incomplete-markets model to demonstrate analytically that in the absence of any redistributional effects of government policies, optimal capital tax is zero despite capital overaccumulation under precautionary savings and borrowing constraints. Our result indicates that public debt is a better tool than capital taxation to restore aggregate productive efficiency.
Working Papers
, Paper 2020-033
Working Paper
The Determination of Public Debt under both Aggregate and Idiosyncratic Uncertainty
Chien, YiLi; Wen, Yi
(2020-08-13)
We use an analytically tractable model to show that the Ramsey planner's decisions to finance stochastic public expenditures under uninsurable idiosyncratic risk implies a departure from tax smoothing. In the absence of state-contingent bonds the government's attempt to balance the competing incentives between tax smoothing and individual consumption smoothing---even at the cost of extra tax distortion---implies a bounded stochastic unit root component in optimal taxes. Nonetheless, a sufficiently high average level of public debt to support individuals’ self-insurance position is welfare ...
Working Papers
, Paper 2019-038
FILTER BY year
FILTER BY Bank
Federal Reserve Bank of St. Louis 46 items
Federal Reserve Bank of Atlanta 10 items
Board of Governors of the Federal Reserve System (U.S.) 9 items
Federal Reserve Bank of Minneapolis 8 items
Federal Reserve Bank of Cleveland 5 items
Federal Reserve Bank of Chicago 3 items
Federal Reserve Bank of Dallas 3 items
Federal Reserve Bank of San Francisco 2 items
Federal Reserve Bank of Boston 1 items
Federal Reserve Bank of Kansas City 1 items
Federal Reserve Bank of New York 1 items
Federal Reserve Bank of Philadelphia 1 items
show more (7)
show less
FILTER BY Series
Working Papers 53 items
FRB Atlanta Working Paper 9 items
Finance and Economics Discussion Series 7 items
Working Paper Series 5 items
Opportunity and Inclusive Growth Institute Working Papers 4 items
Staff Report 3 items
Globalization Institute Working Papers 2 items
International Finance Discussion Papers 2 items
Review 2 items
Policy Hub 1 items
Research Working Paper 1 items
Staff Reports 1 items
show more (7)
show less
FILTER BY Content Type
FILTER BY Author
Chien, YiLi 38 items
Wen, Yi 33 items
Chen, Yunmin 10 items
Carroll, Daniel R. 7 items
Karantounias, Anastasios G. 6 items
Hur, Sewon 5 items
Yang, C.C. 5 items
Peterman, William B. 4 items
Fried, Stephie 3 items
Novan, Kevin 3 items
Wu, HsinJung 3 items
Yang, C. C. 3 items
Colas, Mark 2 items
Ferrière, Axelle 2 items
Garriga, Carlos 2 items
Gomis-Porqueras, Pedro 2 items
Gottardi, Piero 2 items
Heathcote, Jonathan 2 items
Hellwig, Christian 2 items
Ilin, Elias 2 items
Kajii, Atsushi 2 items
Luduvice, Andre 2 items
Nakajima, Tomoyuki 2 items
Owyang, Michael T. 2 items
Shampine, Samantha 2 items
Terry, Ellyn 2 items
Tsujiyama, Hitoshi 2 items
Waller, Christopher J. 2 items
Werquin, Nicolas 2 items
Adão, Bernardino 1 items
Badel, Alejandro 1 items
Baker, Steven D. 1 items
Biljanovska, Nina 1 items
Chari, V. V. 1 items
Chen, Daphne 1 items
Conesa, Juan Carlos 1 items
Croce, Mariano 1 items
Daly, Moira 1 items
Debortoli, Davide 1 items
Findeisen, Sebastian 1 items
Gaillard, Alexandre 1 items
Gayle, George-Levi 1 items
Grübener, Philipp 1 items
Guvenen, Fatih 1 items
Haslag, Joseph H. 1 items
Hernandez-Murillo, Ruben 1 items
Hollifield, Burton 1 items
Huggett, Mark 1 items
Kambourov, Gueorgui 1 items
Krebs, Tom 1 items
Kumar, Anil 1 items
Kuruscu, Burhanettin 1 items
Lansing, Kevin J. 1 items
Liang, Che-Yuan 1 items
Markiewicz, Agnieszka 1 items
Martin, Antoine 1 items
McDonough, Robert 1 items
Monge-Naranjo, Alexander 1 items
Moser, Christian 1 items
Moyen, Stephane 1 items
Nakajima, Makoto 1 items
Narajabad, Borghan N. 1 items
Navarro, Gaston 1 items
Ndiaye, Abdoulaye 1 items
Nunes, Ricardo 1 items
Nybom, Martin 1 items
Ocampo, Sergio 1 items
Olea de Souza e Silva, Pedro 1 items
Osambela, Emilio 1 items
Pei, Yun 1 items
Perez, Luis 1 items
Pouzo, Demian 1 items
Presno, Ignacio 1 items
Raymond, Stephen 1 items
Sachs, Dominik 1 items
Scheffel, Martin 1 items
Schmid, Lukas 1 items
Shephard, Andrew 1 items
Stähler, Nikolai 1 items
Temzelides, Ted 1 items
Vardishvili, Oliko 1 items
Vardoulakis, Alexandros 1 items
Wangner, Philipp 1 items
Winkler, Fabian 1 items
Xie, Zoe 1 items
Yared, Pierre 1 items
Young, Eric 1 items
Young, Eric R. 1 items
show more (83)
show less
FILTER BY Jel Classification
E62 60 items
H30 38 items
E13 28 items
E21 13 items
E22 10 items
C61 9 items
H23 8 items
H63 8 items
F10 5 items
F62 5 items
D52 4 items
D80 4 items
D31 3 items
E32 3 items
E52 3 items
H24 3 items
J22 3 items
O33 3 items
D72 2 items
E58 2 items
E61 2 items
G50 2 items
H27 2 items
H31 2 items
H32 2 items
H55 2 items
I31 2 items
J01 2 items
J15 2 items
J16 2 items
J18 2 items
J21 2 items
J64 2 items
C14 1 items
C60 1 items
C71 1 items
C72 1 items
D13 1 items
D60 1 items
D82 1 items
D90 1 items
D91 1 items
E20 1 items
E24 1 items
E25 1 items
E27 1 items
E40 1 items
E43 1 items
E44 1 items
E60 1 items
G01 1 items
G18 1 items
H25 1 items
H53 1 items
H73 1 items
I22 1 items
I24 1 items
I28 1 items
I38 1 items
J08 1 items
J12 1 items
J24 1 items
J26 1 items
J31 1 items
J65 1 items
O14 1 items
O19 1 items
O3 1 items
O31 1 items
O34 1 items
O38 1 items
O40 1 items
Q54 1 items
Q55 1 items
Q58 1 items
R13 1 items
R21 1 items
show more (73)
show less
FILTER BY Keywords
Incomplete Markets 39 items
Ramsey Problem 34 items
Heterogeneous Agents 17 items
Capital Taxation 11 items
Optimal Taxation 11 items
inequality 9 items
overlapping generations 9 items
Optimal Fiscal Policy 7 items
Tax Smoothing 7 items
taxation 7 items
Optimal Capital Taxation 6 items
Optimal Public Debt 6 items
consumption 6 items
Modified Golden Rule 5 items
tariffs 5 items
welfare 5 items
Optimal Debt 4 items
Ramsey taxation 4 items
Time Inconsistency 4 items
Lump-sum Transfers 3 items
Optimal Quantity of Debt 3 items
Pollution 3 items
Production Externalities 3 items
Public Liquidity 3 items
Role of Public Debt 3 items
Universal Basic Income 3 items
ambiguity aversion 3 items
labor tax 3 items
multiplier preferences 3 items
Fiscal Policy 3 items
Carbon tax 2 items
Government Bonds 2 items
Mirrlees taxation 2 items
Optimal income taxation 2 items
Retirement 2 items
Revenue recycling 2 items
Social Security 2 items
Voting 2 items
austerity 2 items
competitive fringe 2 items
martingale 2 items
misspecification 2 items
wealth distribution 2 items
Government debt 2 items
Maternal labor force participation 2 items
Model uncertainty 2 items
Paternalism 2 items
Unemployment Insurance 2 items
Universal pre-K 2 items
Active-set algorithm 1 items
Capital Income Taxation 1 items
Capital income tax 1 items
Carbon taxation 1 items
Central bank communication 1 items
Child care 1 items
Climate 1 items
Collateral constraint 1 items
College subsidies 1 items
Consumption Inequality 1 items
Crowding out 1 items
Default 1 items
Dependence of policy on information 1 items
Disagreement 1 items
Disaster risk 1 items
Dynamic taxation 1 items
Early education 1 items
Energy transition 1 items
Epstein-Zin 1 items
Female labor supply 1 items
Fiat Money 1 items
Financial aid 1 items
Firm behavior 1 items
Firms location decisions 1 items
Fiscal Union 1 items
Flat tax 1 items
Friedman rule 1 items
Gains from openness Fiscal Constraints. 1 items
Gender equality 1 items
Generational accounts 1 items
Government policy 1 items
Heterogeneous discount factors 1 items
Housing 1 items
Human Capital 1 items
Immiseration 1 items
Implementation of efficient outcomes 1 items
Income Distribution 1 items
Income Taxation 1 items
Indeterminacy 1 items
Inflation 1 items
International Business Cycles 1 items
International Risk Sharing 1 items
Intertemporal wedges 1 items
Inverse Euler equation 1 items
Labor market risk 1 items
Laffer curve 1 items
Life Cycle 1 items
Local labor markets 1 items
Markov-perfect equilibrium 1 items
Modeling 1 items
Monetary Policy 1 items
Moral hazard 1 items
Multidimensional screening 1 items
Multinational firms 1 items
Nonnegative martingale 1 items
Optimal Stopping 1 items
Pigou taxes 1 items
Power law models 1 items
Preference heterogeneity 1 items
Present bias 1 items
Private Information 1 items
Private insurance 1 items
R&D investment 1 items
Ramsey plans 1 items
Ramsey program 1 items
Ramsey redistribution 1 items
Ramsey steady state 1 items
Rate of return heterogeneity 1 items
Redistribution 1 items
Savings 1 items
Scrapping 1 items
Social insurance 1 items
Social transfers 1 items
Social welfare functions 1 items
Spatial equilibrium 1 items
Spending 1 items
Tax on capital 1 items
Tax progressivity 1 items
Taxation and Subsidies 1 items
Taxes and labor supply 1 items
Technology adoption 1 items
Wealth inequality 1 items
Wealth taxation 1 items
Willingness to pay 1 items
balanced budget 1 items
business cycles 1 items
capital tax 1 items
childcare policies 1 items
consumption front-loading 1 items
continuous time 1 items
demand uncertainty 1 items
early education policies 1 items
endogenous growth 1 items
excess burden 1 items
fiscal consolidation 1 items
fiscal insurance 1 items
fiscal policies 1 items
gender equality policies 1 items
generalized Euler equation 1 items
heterogeneity 1 items
heterogeneous agent 1 items
innovation 1 items
intertemporal distortions 1 items
intertemporal elasticity of substitution 1 items
jurisdictions 1 items
labor markets 1 items
long-term debt 1 items
monopolist 1 items
optimal capital tax 1 items
optimal government debt 1 items
optimal interest rate 1 items
optimal reforms 1 items
optimal tax-transfer system 1 items
pessimistic expectations 1 items
profit tax 1 items
public consumption 1 items
public debt 1 items
recursive utility 1 items
robustness 1 items
sovereign defaults 1 items
spatial separation 1 items
subsidy 1 items
tax competition. 1 items
time-consistency 1 items
time-consistent policy 1 items
uniform commodity taxation 1 items
show more (191)
show less