• Top Earners: A Labor Productivity Process (with Claudio Campanale) 

Economics Letters, Volume 229, 2023, [WP version] 

Abstract: In the present paper we compare standard wage processes used in the quantitative literature on the optimal tax progressivity and a process with heterogeneous life-cycle profiles (HIP hereafter) that we propose against the data. We find that the former fail to capture several features of the earnings dynamics at the very top of the distribution while our proposed model improves along some of these dimensions. 

• Entrepreneurship and Tax Evasion 

Economic Modelling, Volume 128, 2023, [WP version]

Abstract:  Business income is systematically underreported and accounts for a sizeable share of the US tax gap. In this paper, I examine the importance of tax evasion in the entrepreneurial sector for the effects of tax reforms. In particular, I analyze the long-run effects of switching from a progressive income tax to a proportional one. The quantitative framework used is a model with heterogeneous agents and incomplete markets that features an entrepreneurial choice and a tax evasion decision. Explicitly considering tax evasion in this reform implies: i) significantly lower increases in capital accumulation and output, ii) a less negative impact on wealth concentration.

• Heterogeneous Effects of Pension Reforms in the EU: A General Equilibrium Perspective (with Boris Chafwehé et al.)