The labor supply and other work incentive effects of welfare programs have long been a
central concern in economic research. Work has also been an increasing focus of policy …

This paper develops a theory of optimal taxation with behavioral agents. We use a general
framework that encompasses a wide range of biases such as misperceptions and …

This paper provides a theoretical analysis of optimal minimum wage policy in a perfectly
competitive labor market and obtains two key results. First, we show that a binding minimum …

The first section reviews the rules and history of the programs. The second section reviews
the trends in caseloads and expenditures and other program characteristics, followed by a …

We study optimal income taxation when labor supply reacts along the intensive and
extensive margins. Individuals are heterogeneous across two unobserved dimensions: their …

In a model where agents have unequal skills and heterogeneous preferences over
consumption and leisure, we look for the optimal tax on the basis of efficiency and fairness …

This paper inverts the usual logic of applied optimal income taxation. It starts from the
observed distribution of income before and after redistribution and corresponding marginal …

In this book, Peter Diamond analyzes social security as a particular example of optimal
taxation theory. Assuming a world of incomplete markets and asymmetric information, he …

This paper characterizes optimal non-linear income taxation in an economy with a
continuum of unobservable productivity levels and endogenous involuntary unemployment …

We derive a sufficient statistics tax formula in a model that incorporates unemployment and
endogenous wages to study the shape of the optimal income tax. Key sufficient statistics are …