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This paper proposes a stylized model of policy determination and imperfect international integration. A country-specific policy wedge corrects labor market imperfections and/or redistributes welfare across differently wealthy agents. Capital market integration with the rest of the world, indexed...
Persistent link: https://www.econbiz.de/10012947618
We set up a model of generalised oligopoly where two countries of different size compete for an exogenous, but variable, number of identical firms. The model combines a desire by national governments to attract internationally mobile firms with the existence of location rents that arise even in...
Persistent link: https://www.econbiz.de/10013317085
democracies; (2) the nature and determinants of modern tax structures; and (3) redistribution in pluralistic societies over …
Persistent link: https://www.econbiz.de/10012964375
We review the literature on the public choice approach to explaining redistribution policies. The focus is on policies … that are pursued with the sole reason to redistribute initial endowments. Moreover, we restrict ourselves to redistribution … in democracies. In democratic settings, generic redistribution games lack equilibria. Structure-inducing rules that give …
Persistent link: https://www.econbiz.de/10012977205
We show that a transfer targeting a minority of the population is sustained by majority voting, however small the minority targeted, when the probability to receive the transfer is decreasing and concave in income. We apply our framework to the French social housing program and obtain that...
Persistent link: https://www.econbiz.de/10013048895
, giving rise to a trade-off between redistribution and the inefficiency of the labor allocation. We compare two environments … lower nominal value in open economies, the actual extent of redistribution in equilibrium is larger in the open than in the …
Persistent link: https://www.econbiz.de/10013315814
In an overlapping generations model with two social classes, rich and poor, parents of the different social classes vote on two issues: redistributive policies for them and education investment for their children. Public education is the engine for growth through its effect on human capital; but...
Persistent link: https://www.econbiz.de/10013317185
voluntarily supplied public goods; specifically, we show that not only an income inequality-raising redistribution policy but also … allowed, an inequality-raising redistribution policy is no longer effective and leaves social welfare unchanged …
Persistent link: https://www.econbiz.de/10012965708
optimal redistribution and social protection policies are in place, globalization necessarily improves social welfare …
Persistent link: https://www.econbiz.de/10013028782
We study numerically the inter- and intra-generational welfare consequences of alternative pension fund policies in response to unexpected demographic, financial and macro-economic shocks. Our analysis is based on an applied many-generation OLG model describing a small-open economy with...
Persistent link: https://www.econbiz.de/10013156226