Macro BB Seminar 2: Optimal Taxation under Incomplete Markets (Heterogenous Agents)

Yikai Wang will present  "A Quantitative Analysis of Optimal Taxation under Incomplete Markets" by Marcus Hagedorn, Hans Holter, Yikai Wang.

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In this project, we study the optimal taxation under incomplete markets with heterogenous agents, as in Aiyagari (1994). First, we quantitatively compute the steady state solution of the Ramsey problem.

The approach is based on Acikgoz (2014) and is also an improvement on it. Then we propose an algorithm to back out the transition dynamics using the knowledge of the steady state

Published Nov. 19, 2014 9:23 AM - Last modified Dec. 11, 2020 11:19 AM