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Three Important Themes: Taxation of Capital Income, Behavioral Economics in Equilibrium Analyses, and Systemic Risk

5 Pages Posted: 12 Aug 2011  

Peter A. Diamond

Massachusetts Institute of Technology (MIT) - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: 2010

Abstract

I identify three areas of research that are important and have large potential payoffs. In all three areas I focus on needs and opportunities for theoretical analyses, since these are areas and research methods with which I am familiar, without any intention to underplay the importance as well of other research inputs, including empirical and experimental work. The first, optimal taxation of capital income is an area of steadily advancing normal science that is making significant progress. The other two, incorporating behavioral economics into equilibrium analyses and understanding systemic risk, are more foundational.

Suggested Citation

Diamond, Peter A., Three Important Themes: Taxation of Capital Income, Behavioral Economics in Equilibrium Analyses, and Systemic Risk (2010). American Economic Association, Ten Years and Beyond: Economists Answer NSF's Call for Long-Term Research Agendas. Available at SSRN: https://ssrn.com/abstract=1888624 or http://dx.doi.org/10.2139/ssrn.1888624

Peter A. Diamond (Contact Author)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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National Bureau of Economic Research (NBER) ( email )

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617-253-3363 (Phone)
617-253-7804 (Fax)

CESifo (Center for Economic Studies and Ifo Institute) ( email )

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Munich, DE-81679
Germany

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