Macroeconomist Aspen Gorry studies employment and tax policy. His research focuses on jobs, specifically on how labor market policies impact employment outcomes for young workers. He has written about the impact of minimum wages on youth unemployment, optimal taxation over a worker's life cycle and the importance of early career experience for workers' labor market outcomes. Before joining AEI, he taught economics at the University of California, Santa Cruz.
Assistant Professor of Economics and Finance, Jon M. Huntsman School of Business, Utah State University
Ph.D., M.A., economics, University of Chicago
B.S., economics and mathematics, Arizona State University
In this article, Gorry and Hassett review the major contributions of the Auerbach- Kotlikoff model of dynamic fiscal policy and explore highlights of subsequent research based on dynamic general equilibrium models of fiscal policy.
With graduation season nearly finished, another cohort of young workers is set to enter the labor force. Members of this cohort confront an immense challenge in planning for retirement: There is a great deal of uncertainty about the Social Security taxes and benefits they will face.
Should the US tax code treat people as families, as it currently does, or as individuals? This paper considers the costs and benefits of switching to a tax system based on individual, rather than family, income.
Phase-outs out of government benefits are well-intentioned: they aim to ensure that the rich do not benefit from programs intended for the poor and middle-class. However, they result in a complex, nontransparent tax and transfer system that punishes work and traps many low-income families in poverty. Reform should aim to provide support for needy Americans while preserving work incentives.
This article discusses the role of both average and marginal tax rates throughout the income distribution. Our analysis relies on optimal tax theory, which allows us to study the trade-off between two of the main goals of policymakers: progressivity and economic efficiency.
In his State of the Union speech, President Obama urged Congress to "act soon to protect future generations." He was talking about addressing environmental issues. But there's an easier, more obvious step we can take to improve the lives of our children and grandchildren. We can act now to fix Social Security.