Redistribution and Social Insurance

• 成果类型: Article
• 署名作者: Golosov, Mikhail; Troshkin, Maxim; Tsyvinski, Aleh
• 署名单位: Princeton University; Cornell University; Yale University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20111550
• 发表日期: 2016
• 页码: 359-386
• 关键词: tax; taxation

摘要

We study optimal redistribution and insurance in a life-cycle economy with private idiosyncratic shocks. We characterize Pareto optima, show the forces determining optimal labor distortions, and derive closed form expressions for their limiting behavior. The labor distortions for high-productivity shocks are determined by the labor elasticity and the higher moments of the shock process; the labor distortions for low-productivity shocks are determined by the autocorrelation of the shock process, redistributive objectives, and past distortions. In a model calibrated using newly available estimates of idiosyncratic shocks, the labor distortions are U-shaped and the savings distortions generally increase in current earnings.