Dr Nicola Pavoni

We derive testable implications of model in which first best allocations are not achieved because of a moral hazard problem with hidden saving.

We study a general model of occupational choice and optimal income taxation where agents have private cost of work that differ across occupations and have both deterministic and random components. We apply our framework to study the work decisions of couples in an extensive set up and give necessary and sufficient conditions under which joint-working households should be subsidized compared to single-worker households.

We study testable implications for the dynamics of consumption and income of models in which first-best allocations are not achieved because of a moral hazard problem with hidden saving.