This paper provides a theoretical and quantitative analysis of efficient pension systems as integral parts of the overall tax code. We study lifecycle environments with active intensive and extensive labor margins. First, we analytically characterize Pareto efficient policies when the main...

In this paper, we study optimal design of taxes and debt in the medium term in presence of domestic inequality and lack of commitment. We study an OLG economy in which individuals work and save for retirement when young. Government of the small open economy provides transfers to both the young...

This paper is motivated by two facts: 1) There is a significant difference in mortality across income groups. 2) This difference in mortality is getting larger. I study the extent in which progressively of social security is affected by differences in mortality across income groups and how...

We study the welfare implications of different market structures in a model of adverse selection. In particular, we contrast a competitive exchange, where the informed agents can trade simultaneously with multiple principals with an íover-the-counterí setting characterized by search frictions...

This paper characterizes tax and debt dynamics in Ramsey plans for incomplete markets economies that generalize an Aiyagari et al. (2002) economy by allowing a single asset traded by the government to be risky. Long run debt and tax dynamics can be attracted not only to the first-best...

We develop a dynamic nonlinear, noisy REE model of credit risk pricing un- der dispersed information that can theoretically and quantitatively account for the credit spread puzzle. The first contribution is a sharp analytical characteri- zation of the dynamic REE equilibrium and its comparative...

We analyze investment incentives and risk-taking by firms when equity markets aggregate information with noise. Noisy information aggregation drives a wedge between the expected social value and the market value of investments, inducing inefficient rent-seeking by incumbent shareholders and...