Can the Spanish government generate more tax revenue by making personal income taxes progressive? To answer this question, we build a life-cycle economy with uninsurable labor productivity risk and endogenous supply. Individuals face progressive on capital incomes proportional that capture social security, corporate income, consumption taxes. Our is yes, but not much. A reform increases for ind...

Policies aimed at redistributing to the most vulnerable individuals must consider inequality within households as much between households. In that spirit, many cash transfers are targeted women rather than men. Tax legislations can also contain specific gender provisions treat men and differently. Whether these policies operate some intrahousehold redistribution, or defeated by household agency...

As the centerpiece of its “growth package,” the Bush Administration proposes to eliminate taxes that individuals pay on dividend payments they receive from corporations. These dividends would receive tax-free treatment to the extent that they have been paid from profits subject to the corporate income tax. For individuals who hold shares in companies that do not pay dividends, the proposal woul...

In this paper I study a model of life-cycle consumption in which individuals react optimally to their own income process but ignore economy wide information. Since individual income is less persistent than aggregate income consumers will react too little to aggregate income variation. Aggregate consumption will be excessively smooth. Since aggregate information is slowly incorporated into consu...