This paper reviews recent advances in the theory of optimal policy in a dynamic Mirrlees
setting, and contrasts this approach to the one based on the representative-agent Ramsey …

We conduct a comparative welfare analysis of 133 historical policy changes over the past
half-century in the United States, focusing on policies in social insurance, education and job …

A Ramsey planner chooses a distorting tax on labor and manages a portfolio of securities in
an economy with incomplete markets. We develop a method that uses second order …

Using a quantitative model that features technical progress in automation and endogenous
skill choice, we show that, given the current US tax system, a sustained fall in automation …

This paper derives optimal income tax and human capital policies in a life cycle model with
risky human capital. The government faces asymmetric information regarding agents' ability …

We consider a dynamic Mirrlees economy in a life-cycle context and study the optimal
insurance arrangement. Individual productivity evolves as a Markov process and is private …

Is there a role for governments in emerging countries to accelerate economic development
by intervening in product and factor markets? To address this question, we study optimal …

We study optimal monetary and fiscal policies in a New Keynesian model with
heterogeneous agents, incomplete markets, and nominal rigidities. Our approach uses small …

Abstract According to the Chamley-Judd result, capital should not be taxed in the long run. In
this paper, we overturn this conclusion, showing that it does not follow from the very models …

Should the generosity of unemployment benefits and the progressivity of income taxes
depend on the presence of business cycles? This paper proposes a tractable model where …