Consumption Insurance Against Wage Risk: Family Labor Supply and Optimal Progressive Income Taxation
---- Acknowledgments ----
We thank Greg Kaplan and Luigi Pistaferri for useful conversations at an early stage of this project, as well as Itay Saporta-Eksten for providing important details about the implementation of the BPS method. Krueger gratefully acknowledges financial support from the NSF under grant SES-0820494. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.