Many have argued that if labor income is difference stationary, the permanent income hypothesis predicts that consumption should be relatively volatile. In U.S. aggregate data, labor income is well ...

We demonstrate that if consumption is proportional to permanent income, it is necessarily equal to a geometrically weighted average of past realized incomes. Therefore, the relationship between ...

Policymakers often consider temporarily redistributing income from rich to poor households to stimulate the economy. This is based in part on the idea that poor households spend a larger share of ...

Official income inequality statistics indicate a sharp rise in inequality over the past five decades. These statistics do not accurately reflect inequality because income is poorly measured, ...

A national consumption tax, proposed as an alternative to the income tax, has long been debated in the United States. While ...

Now that the dividend tax reduction is law, Republicans are already beginning to discuss their tax plans for next year. Such a rapid change in focus is likely to become part of the landscape in ...