In this paper, we explore the relationship between optimal trade and redistributive policies when the gains from trade are unequally distributed. We use a competitive trade model with input-output linkages where trade affects relative wages and the reallocation of workers across various sectors...

We use an extended Barro-Becker model of endogenous fertility, in which parents are heterogeneous in their labor productivity, to study the efficient degree of consumption inequality in the long run. In our environment a utilitarian planner allows for consumption inequality even when labor...

We use an extended Barro-Becker model of endogenous fertility, in which parents are heterogeneous in their labor productivity, to study the efficient degree of consumption inequality in the long run. In our environment a utilitarian planner allows for consumption inequality even when labor...

We use an extended Barro-Becker model of endogenous fertility, in which parents are heterogeneous in their labor productivity, to study the efficient degree of consumption inequality in the long run. In our environment a utilitarian planner allows for consumption inequality even when labor...

We study Pareto optimal policy reforms aimed at overhauling retirement financing asan integral part of the tax and transfer system. Our framework for policy analysis is aheterogeneous-agent overlapping-generations model that performs well in matching the aggregateand distributional features of...