• Matthew Weinzierl


Equalizing Outcomes and Equalizing Opportunities: Optimal Taxation When Children's Abilities Depend on Parents' Resources. Matthew C. Weinzierl, April 15, 2014, Paper. "Empirical research suggests that parents' economic resources affect their children's future earnings abilities. Optimal tax policy therefore treats future ability distributions as endogenous to current taxes. We model this endogeneity, calibrate the model to match estimates of the intergenerational transmission of earnings ability in the United States, and use the model to simulate such an optimal policy numerically..." Link