uncertainty and possible equation misspecifications and approximations. This correction sensibly enhances the robustness of the …

The Ramsey optimal taxation theory implies that the tax rate on capital income should be zero in the long run. This …

role of uncertainty and risk aversion are examined using several highly simplified models involving a possible future …

We develop a model of education where individuals face educational risk. Successfully entering the skilled labor sector … depends on individual effort in education and public resources, but educational risk still causes (income) inequality. We show … in a Second-best setting. Contrary to standard models of income risk, it is not optimal to use a proportional wage tax …

which individuals face educational risk and wage dispersion across two types of skills. Successful graduation and working as … a skilled worker depends on individual effort in education and on public resources, but educational risk still causes …

Should the realized risk premium be taxed – or not? In a simple two asset portfolio model we analyze the optimal … taxation rule when the economy faces aggregate risk. We show in an appropriate designed tax system, that the risk premium of … the risky asset should be fully taxed if the households are risk neutral in public consumption. If they are risk averse in …

excess return with a special tax rate. There is no trade off between risk allocation and efficiency in intertemporal … triple income tax. This distinction and a special tax rate on the excess return is necessary in order to have an optimal risk …