Endogenous Income Taxes in OLG Economies

Optimal Taxes on Capital in the OLG Model with Uninsurable Idiosyncratic Income Risk Optimal Taxes on Capital in the OLG Model with Uninsurable Idiosyncratic Income Risk∗

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 feedback of private precautionary saving. For logarithmic utility our full analytical solution of the Ramsey problem shows that the optimal aggregate saving rate is in...

Can Capital Income Taxes Survive in an Open Economies ?

Recursive equilibrium in stochastic OLG economies∗

We prove generic existence of recursive equilibrium for overlapping generations economies with uncertainty. Generic here means in a residual set of utilities and endowments. The result holds provided there is sufficient intragenerational household heterogeneity.

On efficiency and local uniqueness in two-sector OLG economies

We consider a two-sector overlapping generations model with homothetic preferences. Under standard conditions on technologies, upon large enough values for the share of first period consumption over the wage income, we prove that dynamic efficiency and local uniqueness of the competitive equilibrium hold. On the contrary, for lower values of the share of first period consumption over the wage i...

Recursive equilibrium in stochastic OLG economies: Incomplete markets ¬リニ

We prove generic existence of recursive equilibrium for overlapping generations economies with uncertainty and incomplete financial markets. Generic here means in a residual set of utilities and endowments. The result holds provided there is sufficient intragenerational household heterogeneity, and transition probabilities and the asset payoff matrix satisfy mild regularity conditions. The pape...