Search Results
Showing results 1 to 10 of approximately 87.
(refine search)
Working Paper
Optimal Unemployment Insurance and International Risk Sharing
Winkler, Fabian; Moyen, Stephane; Stähler, Nikolai
(2016-07)
We discuss how cross-country unemployment insurance can be used to improve international risk sharing. We use a two-country business cycle model with incomplete financial markets and frictional labor markets where the unemployment insurance scheme operates across both countries. Cross-country insurance through the unemployment insurance system can be achieved without affecting unemployment outcomes. The Ramsey-optimal policy however prescribes a more countercyclical replacement rate when international risk sharing concerns enter the unemployment insurance trade-off. We calibrate our model to ...
Finance and Economics Discussion Series
, Paper 2016-054
Working Paper
The Determination of Public Debt under both Aggregate and Idiosyncratic Uncertainty
Chien, YiLi; Wen, Yi
(2022-04-28)
We use an analytically tractable, heterogeneous-agent incomplete-markets model to show that the Ramsey planner's decision to finance stochastic public expenditures implies a departure from tax smoothing and an endogenous mean-reverting force to support positive debt growth despite the government's precautionary saving motives. Specifically, the government's attempt to balance the competing incentives between its own precautionary saving (tax smoothing) and households' precautionary saving (individual consumption smoothing)---even at the cost of extra tax distortion---implies an endogenous, ...
Working Papers
, Paper 2019-038
Working Paper
Time-Inconsistent Optimal Quantity of Debt
Chien, YiLi; Wen, Yi
(2021-04-06)
A key property of the Aiyagari-type heterogeneous-agent models is that the equilibrium interest rate of public debt lies below the time discount rate. This fundamental property, however, implies that the Ramsey planner's fiscal policy may be time-inconsistent because the forward-looking planner would have a dominate incentive to issue plenty of debt, such that all households are fully self-insured against idiosyncratic risk whenever the interest rate of government borrowing is lower than the household time discount rate. But such a full self-insurance allocation may be paradoxical because, to ...
Working Papers
, Paper 2020-037
Report
Practical Optimal Income Taxation
Heathcote, Jonathan; Tsujiyama, Hitoshi
(2021-07-30)
We review methods used to numerically compute optimal Mirrleesian tax and transfer schedules in heterogeneous agent economies. We show that the coarseness of the productivity grid, while a technical detail in terms of theory, is critical for delivering quantitative policy prescriptions. Existing methods are reliable only when a very fine grid is used. The problem is acute for computational approaches that use a version of the Diamond-Saez implicit optimal tax formula. If using a very fine grid for productivity is impractical, then optimizing within a flexible parametric class is preferable to ...
Staff Report
, Paper 626
Working Paper
Optimal Ramsey Capital Income Taxation —A Reappraisal
Chien, YiLi; Wen, Yi
(2017-08-18)
This paper addresses a long-standing problem in the optimal Ramsey capital taxation literature. The tractability of our model enables us to solve the Ramsey problem analytically along the entire transitional path. We show that the conventional wisdom on Ramsey tax policy and its underlying intuition and rationales do not hold in our model and may thus be misrepresented in the literature. We uncover a critical trade off for the Ramsey planner between aggregate allocative efficiency in terms of the modified golden rule and individual allocative efficiency in terms of self-insurance. Facing the ...
Working Papers
, Paper 2017-24
Working Paper
On the Distributional Effects of International Tariffs
Hur, Sewon; Carroll, Daniel R.
(2020-06-22)
What are the distributional consequences of tariffs? We build a trade model with incomplete asset markets and households that are heterogeneous in their income, wealth, and labor skill. We increase tariffs by 5 percentage points and examine several budget-neutral fiscal policies for redistributing tariff revenue. Without redistribution, tariffs hurt all households, but higher tradables prices disproportionately harm the poor and the ensuing decline in the skill premium disproportionately harms the skilled. With redistribution, lowering the labor income tax leads to lower economic activity but ...
Working Papers
, Paper 20-18
Working Paper
The Ramsey Steady-State Conundrum in Heterogeneous-Agent Economies
Chien, YiLi; Wen, Yi
(2022-09-16)
In infinite horizon, heterogeneous-agent and incomplete-market models, the existence of an interior Ramsey steady state is often assumed instead of proven. This paper makes two fundamental contributions: (i) We prove that the interior Ramsey steady state assumed by Aiyagari (1995) does not exist in the standard Aiyagari model. Specifically, a steady state featuring the modified golden rule and a positive capital tax is feasible but not optimal. (ii) We design a modified, analytically tractable version of the standard Aiyagari model to unveil the necessary and/or sufficient conditions for the ...
Working Papers
, Paper 2022-009
Working Paper
Optimal Fiscal Policies under Market Failures
Chien, YiLi; Wen, Yi
(2020-01-21)
The aggregate capital stock in a nation can be overaccumulated for many different reasons. This paper studies which policy or policy mix is more effective in achieving the socially optimal (golden rule) level of aggregate capital stock in an infinite-horizon heterogeneous-agents incomplete-markets economy where capital is over-accumulated for two distinct reasons: (i) precautionary savings and (ii) production externalities. By solving the Ramsey problem analytically along the entire transitional path, we show that public debt and capital taxation play very distinct roles in dealing with the ...
Working Papers
, Paper 2020-002
Working Paper
Individual and Aggregate Constrained Efficient Intertemporal Wedges in Dynamic Mirrleesian Economies
Chien, YiLi; Owyang, Michael T.; Chen, Yunmin
(2015-12-21)
Assuming a neoclassical production technology, this paper characterizes constrained efficient intertemporal wedges for the macro aggregate as well as the micro individual allocation of dynamic Mirrleesian economies. We first construct ?Pareto-Negishi weights? from the multipliers on a sequence of temporary incentive constraints. For a fairly general stochastic process of idiosyncratic productivity shocks, we show that the evolution of the Pareto-Negishi weight associated with agents? consumption is a nonnegative martingale. This powerful property enables us to deliver three contributions to ...
Working Papers
, Paper 2015-43
Working Paper
Intergenerational policy and the measurement of tax incidence
Conesa, Juan Carlos; Garriga, Carlos
(2013)
We evaluate the ability of generational accounting to assess the potential welfare implications of policy reforms. In an intergenerational context policy reforms usually have redistributive, efficiency, and general equilibrium implications. Our analysis shows that when the policy reform implies changes in economic efficiency, generational accounts can be misleading not only about the magnitude of welfare changes, but also about the identity of who wins and who losses. In contrast the generational accounts correctly identify welfare changes when the policy reform has only a pure ...
Working Papers
, Paper 2013-016
FILTER BY year
FILTER BY Bank
Federal Reserve Bank of St. Louis 45 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 4 items
Federal Reserve Bank of Chicago 3 items
Federal Reserve Bank of Dallas 3 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
Federal Reserve Bank of San Francisco 1 items
show more (7)
show less
FILTER BY Series
Working Papers 51 items
FRB Atlanta Working Paper 9 items
Finance and Economics Discussion Series 7 items
Opportunity and Inclusive Growth Institute Working Papers 4 items
Working Paper Series 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 37 items
Wen, Yi 32 items
Chen, Yunmin 10 items
Carroll, Daniel R. 6 items
Karantounias, Anastasios G. 6 items
Hur, Sewon 5 items
Yang, C.C. 5 items
Peterman, William B. 3 items
Wu, HsinJung 3 items
Yang, C. C. 3 items
Colas, Mark 2 items
Ferrière, Axelle 2 items
Fried, Stephie 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
Nakajima, Tomoyuki 2 items
Novan, Kevin 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
Luduvice, Andre 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 R. 1 items
show more (82)
show less
FILTER BY Jel Classification
E62 57 items
H30 37 items
E13 27 items
E21 12 items
E22 10 items
C61 9 items
H63 8 items
H23 7 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
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
D72 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
R13 1 items
R21 1 items
show more (72)
show less
FILTER BY Keywords
Incomplete Markets 38 items
Ramsey Problem 34 items
Heterogeneous Agents 15 items
Capital Taxation 11 items
Optimal Taxation 10 items
overlapping generations 8 items
Optimal Fiscal Policy 7 items
Tax Smoothing 7 items
inequality 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
Government Bonds 2 items
Mirrlees taxation 2 items
Optimal income taxation 2 items
Retirement 2 items
Social Security 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 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
Rate of return heterogeneity 1 items
Redistribution 1 items
Revenue recycling 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
Voting 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
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 elasticity of substitution 1 items
jurisdictions 1 items
labor markets 1 items
long-term debt 1 items
monopolist 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 (186)
show less