Background Reading

We investigate how reduction of income inequality through tax policy affects economic growth. Taxation at different points of the income distribution has heterogeneous impacts on households' incentives to invest, work, and consume. Using U.S.

There is a large and growing literature on peer effects, but much less is known about the role of friendships and social relationships in student outcomes. The best evidence on the mechanisms behind aggregate peer effects suggests an important role for discipline and disruption.