between social security and Medicaid. As a result of these interactions, we find that the US social security significantly lowers the cost of financing Medicaid and other welfare programs for the elderly as it reduces the fraction of households who choose to rely on means-tested transfers to...

Recent research has found that the dynamics of the New Keynesian model are very different when the nominal interest rate is zero. Positive technology shocks and negative shocks to the labor tax rate lower economic activity and the size of the government purchase multiplier can be as large as...