Conesa, Juan Carlos; Kitao, Sagiri; Krueger, Dirk - Center for Financial Studies - 2006
of the policy maker for insurance against idiosyncratic shocks and redistribution among agents of different abilities … uninsurable productivity shocks) utility of a newborn in a stationary equilibrium. Embedded in this welfare criterion is a concern …. Such insurance and redistribution can be achieved by progressive labor income taxes or taxation of capital income, or both …