This paper uses a simple one-sector general equilibrium model to compare the marginal excess burden of taxes on labour income and taxes on capital. It is shown that if there is a positive tax on capital, conventional measures of the marginal excess burden of taxes on labour income such as that...

We study the effect of income uncertainty on consumption in a model that includes precautionary saving. In contrast to previous studies, we focus on time-series variation in income uncertainty. Our time-series measure of income uncertainty is constructed from a panel of forecasts. We find...