Andersen, Torben M.; Bhattacharya, Joydeep - 2013
The welfare state is not merely a stand-in for missing markets; it can do a whole lot more. When generations overlap … and the young must borrow to make educational investments, a dynamically-efficient welfare state, by taxing the middle …-aged and offering a compensatory old-age pension, can generate higher long-run human capital and welfare compared to laissez …