Iván Werning
Biographic Data
| ID | 1454380 |
|---|---|
| NAME | Iván Werning |
| GIVEN NAMES | Iván |
| FAMILY NAME | Werning |
| SIGNATURE | WERNING I |
| AFFILIATIONS | National Bureau of Economic Research |
| VERIFIED | No |
| TOTAL WORKS | 6 |
| TOTAL CITATIONS | 26 |
| AUTHOR COUNT | 6 |
| EDITOR COUNT | 0 |
| FIRST PUBLICATION YEAR | 2005 |
| LATEST PUBLICATION YEAR | 2015 |
| H-INDEX | 3 |
Incomplete Markets and Aggregate Demand
I study aggregate consumption dynamics under incomplete markets, focusing on the relationship between consumption and the path for interest rates.I first provide a general aggregation result under extreme illiquidity (no borrowing and no outside assets), deriving a generalized Euler relation involving the real interest rate, current and future aggregate consumption.This provides a tractable way of incorporating incomplete markets in macroeconomic…
A Theory of Capital Controls as Dynamic Terms-of-Trade Manipulation
We develop a theory of capital controls as dynamic terms-of-trade manipulation. We study an infinite-horizon endowment economy with two countries. One country chooses taxes on international capital flows in order to maximize the welfare of its representative agent, while the other country is passive. We show that a country growing faster than the rest of the world has incentives to promote domestic savings by taxing capital inflows or subsidizing…
Capital Taxation: Quantitative Explorations of the Inverse Euler Equation
Economies with private information provide a rationale for capital taxation. In this paper we ask what the welfare gains from following this prescription are. We develop a method to answer this question in standard general equilibrium models with idiosyncratic uncertainty and incomplete markets. We find that general equilibrium forces are important and greatly reduce the welfare gains. Once these effects are taken into account, the gains are rela…
On the Optimality of the Friedman Rule with Heterogeneous Agents and Nonlinear Income Taxation
We study the optimal inflation tax in an economy with heterogeneous agents subject to nonlinear taxation of labor income. We find that the Friedman rule is Pareto efficient when combined with a nondecreasing labor income tax. In addition, the optimum for a utilitarian social welfare function lies on this region of the Pareto frontier. The welfare costs from inflation are bounded below by the area under the demand curve. (c) 2008 by The University…
Inequality and Social Discounting
We explore steady-state inequality in an intergenerational model with altruistically linked individuals who experience privately observed taste shocks. When the welfare function depends only on the initial generation, efficiency requires immiseration: inequality grows without bound and everyoneâ€TMs consumption converges to zero. We study other efficient allocations in which the welfare function values future generations directly, placing a posit…
The Equilibrium Distribution of Income and the Market for Status
This paper explores the implications for risk‐taking behavior and the equilibrium distribution of income of assuming that the desire for status positions is a powerful motive and that it raises the marginal utility of consumption. In contrast to previous analyses, we consider the case in which status positions are sold in a hedonic market. We show that such a complete hedonic market in status positions can be perfectly replicated by a simpler arr…
The Equilibrium Distribution of Income and the Market for Status
This paper explores the implications for risk‐taking behavior and the equilibrium distribution of income of assuming that the desire for status positions is a powerful motive and that it raises the marginal utility of consumption. In contrast to previous analyses, we consider the case in which status positions are sold in a hedonic market. We show that such a complete hedonic market in status positions can be perfectly replicated by a simpler arr…
Inequality and Social Discounting
We explore steady-state inequality in an intergenerational model with altruistically linked individuals who experience privately observed taste shocks. When the welfare function depends only on the initial generation, efficiency requires immiseration: inequality grows without bound and everyoneâ€TMs consumption converges to zero. We study other efficient allocations in which the welfare function values future generations directly, placing a posit…
Incomplete Markets and Aggregate Demand
I study aggregate consumption dynamics under incomplete markets, focusing on the relationship between consumption and the path for interest rates.I first provide a general aggregation result under extreme illiquidity (no borrowing and no outside assets), deriving a generalized Euler relation involving the real interest rate, current and future aggregate consumption.This provides a tractable way of incorporating incomplete markets in macroeconomic…
On the Optimality of the Friedman Rule with Heterogeneous Agents and Nonlinear Income Taxation
We study the optimal inflation tax in an economy with heterogeneous agents subject to nonlinear taxation of labor income. We find that the Friedman rule is Pareto efficient when combined with a nondecreasing labor income tax. In addition, the optimum for a utilitarian social welfare function lies on this region of the Pareto frontier. The welfare costs from inflation are bounded below by the area under the demand curve. (c) 2008 by The University…
A Theory of Capital Controls as Dynamic Terms-of-Trade Manipulation
We develop a theory of capital controls as dynamic terms-of-trade manipulation. We study an infinite-horizon endowment economy with two countries. One country chooses taxes on international capital flows in order to maximize the welfare of its representative agent, while the other country is passive. We show that a country growing faster than the rest of the world has incentives to promote domestic savings by taxing capital inflows or subsidizing…
Capital Taxation: Quantitative Explorations of the Inverse Euler Equation
Economies with private information provide a rationale for capital taxation. In this paper we ask what the welfare gains from following this prescription are. We develop a method to answer this question in standard general equilibrium models with idiosyncratic uncertainty and incomplete markets. We find that general equilibrium forces are important and greatly reduce the welfare gains. Once these effects are taken into account, the gains are rela…
The Equilibrium Distribution of Income and the Market for Status
This paper explores the implications for risk‐taking behavior and the equilibrium distribution of income of assuming that the desire for status positions is a powerful motive and that it raises the marginal utility of consumption. In contrast to previous analyses, we consider the case in which status positions are sold in a hedonic market. We show that such a complete hedonic market in status positions can be perfectly replicated by a simpler arr…
Inequality and Social Discounting
We explore steady-state inequality in an intergenerational model with altruistically linked individuals who experience privately observed taste shocks. When the welfare function depends only on the initial generation, efficiency requires immiseration: inequality grows without bound and everyoneâ€TMs consumption converges to zero. We study other efficient allocations in which the welfare function values future generations directly, placing a posit…
On the Optimality of the Friedman Rule with Heterogeneous Agents and Nonlinear Income Taxation
We study the optimal inflation tax in an economy with heterogeneous agents subject to nonlinear taxation of labor income. We find that the Friedman rule is Pareto efficient when combined with a nondecreasing labor income tax. In addition, the optimum for a utilitarian social welfare function lies on this region of the Pareto frontier. The welfare costs from inflation are bounded below by the area under the demand curve. (c) 2008 by The University…
Capital Taxation: Quantitative Explorations of the Inverse Euler Equation
Economies with private information provide a rationale for capital taxation. In this paper we ask what the welfare gains from following this prescription are. We develop a method to answer this question in standard general equilibrium models with idiosyncratic uncertainty and incomplete markets. We find that general equilibrium forces are important and greatly reduce the welfare gains. Once these effects are taken into account, the gains are rela…
A Theory of Capital Controls as Dynamic Terms-of-Trade Manipulation
We develop a theory of capital controls as dynamic terms-of-trade manipulation. We study an infinite-horizon endowment economy with two countries. One country chooses taxes on international capital flows in order to maximize the welfare of its representative agent, while the other country is passive. We show that a country growing faster than the rest of the world has incentives to promote domestic savings by taxing capital inflows or subsidizing…
Incomplete Markets and Aggregate Demand
I study aggregate consumption dynamics under incomplete markets, focusing on the relationship between consumption and the path for interest rates.I first provide a general aggregation result under extreme illiquidity (no borrowing and no outside assets), deriving a generalized Euler relation involving the real interest rate, current and future aggregate consumption.This provides a tractable way of incorporating incomplete markets in macroeconomic…
Economics (6 works) · Fiscal Policy and Economic Growth (5 works) · Microeconomics (5 works) · Economic theories and models (4 works) · Financial Literacy, Pension, Retirement Analysis (4 works) · Market economy (4 works) · Mathematics (4 works) · Welfare (4 works) · Econometrics (3 works) · Capital (architecture (2 works)