A central finding of the modern labor market literature is that labor supply responses tend to be concentrated along the extensive margin (labor force participation) rather than the intensive margin (hours of work). Yet, the literature on the marginal cost of public funds (MCF) focuses solely on...

The existing literature suggests that the concern for economic efficiency calls for individual taxation of married couples with a higher rate on the primary earner. This paper reconsiders the choice of tax unit in the Becker model of household production, which includes previous analyses as...

This paper analyses the effects of taxation in New Keynesian economics. The results show that taxes contribute to price and wage stickiness and, moreover, that the resulting fluctuations in welfare are magnified by the presence of taxes. These results are at odds with the old Keynesian idea of...

The last 40 years have seen huge innovations in computing technology and data availability. Data derived from millions of administrative records or by using (as we do) new methods of data generation such as text mining are now common. New data often requires new methods, which in turn can...

This paper reviews and generalizes the sufficient statistics approach to policy evaluation. The idea of the approach is that the welfare effect of policy changes can be expressed in terms estimable reduced-form elasticities, allowing for policy evaluation without estimating the structural...

This paper investigates whether the effects of children on the labor market outcomes of women relative to men -- child penalties -- are shaped by the work behavior of peers' parents during adolescence. Leveraging quasi-random variation in the fraction of peers with working parents across cohorts...

This paper investigates whether the effects of children on the labor market outcomes of women relative to men - child penalties - are shaped by the work behavior of peers' parents during adolescence. Leveraging quasi-random variation in the fraction of peers with working parents across cohorts...

This article reviews and generalizes the sufficient statistics approach to policy evaluation. The idea of the approach is that the welfare effect of policy changes can be expressed in terms of estimable reduced-form elasticities, allowing for policy evaluation without estimating the structural...