We characterize the optimal linear tax on capital in an Overlapping Generations model with two period lived households facing uninsurable idiosyncratic labor income risk. The Ramsey government internalizes the general equilibrium effects of private precautionary saving on factor prices and taxes capital unless the weight on future generations in the social welfare function is sufficiently … Read more
Optimal taxes on capital in the OLG model with uninsurable idiosyncratic income risk
Should Germany have built a new wall? Macroeconomic lessons from the 2015-18 refugee wave
This research uses economic data modelling to look at whether the arrival of large numbers of refugees in 2015-16 depressed wages in Germany. It concludes that while some low-skilled natives did suffer, this effect was more than compensated for by welfare benefits to older residents. The researchers used data capturing the arrival of more than … Read more