the welfare loss of capital income taxation relative to the alternatives of taxing consumption and labor income.The second … technology of private investment. Government policies that discourage saving might make the Schumpeterian vision of a shift from … sharp decline in the net national saving rate-from over 8% of GDP in the U.S. in the 1970s to only 4.5% in the 1980s & from …

consumption or investment. In this way, aggregate demand would be maintained by substituting public consumption for private … consumption. A second alternative prescription was to reduce the private saving rate. Early Keynesians like Seymour Harris saw the …Three ways of averting "excess saving" have been emphasized in both theory and practice. The thrust of the Keynesian …

We investigate optimal consumption, asset accumulation and portfolio decisions in a realistically calibrated life …-cycle model with flexible labor supply. Our framework allows for wage rate uncertainly, variable labor supply, social security …, variable labor materially alters pre-retirement portfolio choice by significantly raising optimal equity holdings. Using this …

fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry … reminders may increase saving, and that reminders will be more effective when they increase the salience of a specific …

. We characterize a class of environments in which the tax on labor goes to zero in the long run, while the tax on capital … income may be non-zero, reversing the standard prediction of the Ramsey tax literature. The zero labor tax is an optimal long … sovereign debt constraints. The front loading of labor taxes allows the economy to build a large (aggregate) debt position in …

return on capital, output growth rates, tax progressivity, top income shares, and heterogeneity in saving rates and …

We propose an empirical implementation of the consumption-investment problem using the martingale representation … simplifies the investor's task of specifying the investment opportunity set and inherits the computational convenience of the … and probabilities, which generate variation in consumption, and the consumption smoothing induced by risk aversion. Using …

outcomes and elasticities, including the responses of the labor share and the labor wedge to demand shocks and the elasticity … of output with respect to labor inputs. We also decompose changes in work hours into different margins (hours per worker …, the employment rate, and the labor force) and examine effects on local rental prices, wages, and firm entry. We compare …