This paper studies how tax-and-transfer progressivity influences aggregate fluctuations when interacting with household heterogeneity. Using a simple static model of the extensive margin labor supply, we analytically characterize how a degree of progressivity influences differential labor supply...

How and to what extent does the optimality of Universal Basic Income (UBI) depend on itstime inconsistency? I address these questions in an incomplete-markets economy by characterizingand solving for the equilibria of a dynamic game between individuals and a benevolentgovernment according to its...