This paper describes a new continuous-time principal-agent model, in which the output is a
diffusion process with drift determined by the agent's unobserved effort. The risk-averse …

We lay down a standard macroeconomic model of a small open economy with a fixed
exchange rate and study optimal capital controls (defined as maximizing the utility of a …

This paper studies the optimal level of discretion in policymaking. We consider a fiscal policy
model where the government has time‐inconsistent preferences with a present bias toward …

We present a model with altruistic parents and heterogeneous productivity. We derive two
key properties for optimal estate taxation. First, the estate tax should be progressive, so that …

Using data from over 100 US retirement plans and a representative UK panel, I document
the impact of auto-enrollment on retirement savings at different horizons. I replicate the …

We study efficient non-linear taxation of labour and capital in a dynamic Mirrleesian model
incorporating political economy constraints. Policies are chosen sequentially over time …

We study optimal fiscal and redistributive policies in an open economy without commitment.
Due to its redistributive motives, the government's incentive to default on its external debt is …

Concerns about intergenerational equity have led to an influential practice of setting social
utility discount rates based on ethical considerations rather than to match household …

We study optimal savings policies when there is a dual concern about undersaving for
retirement and income inequality. Agents differ in present bias and earnings ability, both …

We study a fiscal policy model in which the government is present‐biased towards public
spending. Society chooses a fiscal rule to trade off the benefit of committing the government …