… While the focus of this paper is on capital taxation, the intuition generalizes to the … of capital
income needs to reflect many factors. This paper focuses on heterogeneity in savings rates, …

… in preferences across goods which is perfectly correlated with income-earning ability adds a
… model, preference heterogeneity of this type recommends capital income tax rates that are 2…

… rates of return on capital. We derive optimal non-linear taxes on labor and capital income in
the presence of such return heterogeneity… reasons why returns are heterogeneous: because …

… with heterogeneous income profiles (HIPs) or restricted income profiles (RIPs). The HIP
assumes that individual labor income grows deterministically at an unobserved rate … that income …

… in which consumers are heterogeneous in several respects: labor income, asset wealth, and
… ’s implications for heterogeneity—notably, the equilibrium distributions of income and wealth…

… economic model to include substantial heterogeneity in income and wealth. More precisely,
… uncertain aggregate productivity, face idiosyncratic income (employment) shocks. Following …

… Finally we find that earnings variances are heterogeneous across individuals. Thus the
iid nature of income innovations is rejected by our data, which points to both heteroskedasticity …

… faster thus raising investment and the capital stock. Given the potentially different …
heterogeneous households facing uninsurable idiosyncratic labor income risk and heterogeneous …

… Inflation simply introduces a distortion in the measurement of individual capital income. In
particular, an inflation rate of n overstates capital income in an amount equal to it/(I + n) per unit…

… We use a sample drawn from the Panel Study of Income Dynamics (PSID), and focus on …
latent heterogeneity than previous investigators. We show that allowance for heterogeneity …