Taxation and Redistribution of Residual Income Inequality
---- Acknowledgements ----
We are grateful to Jim Albrecht, Paul Beaudry, Michele Boldrin, Jan Eeckhout, Pieter Gautier, Veronica Guerrieri, Espen Moen, Dale Mortensen, Giuseppe Moscarini, Nicola Pavoni, Tom Sargent, Rob Shimer and Randy Wright for their comments on earlier versions of the paper. We have also received useful comments from seminar participants at NYU, UW Madison, UBC, UAB, EUI, WashU, Queen's, Science Po, Southampton and from participants at the Northwestern Conference in Honor of Dale Mortensen (Evanston 2011), the NBER Summer Institute (Cambridge 2011), the Tinbergen Institute Conference on Friction and Policy (Amsterdam 2011) and the American Economic Association Meeting (Chicago 2012). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. Golosov acknowledges the NSF Career grant and Sloan Foundation for financial support.