In a world where labor earnings are uncertain and borrowing-constraints are present, progressive taxation is likely to have risk-mitigating benefits for consumption-smoothing agents; higher tax paymen ...
This paper examines the consequences of introducing an idiosyncratic uncertain interest rate in a standard life-cycle model à la Auerbach and Kotlikoff (1987).
This paper investigates the importance of the usual assumption of divisibility. In the labor market a finite set of choices is introduced: between working full or part-time or not to work at all.