Showing 1 - 10 of 41
This paper develops an endogenous growth model in which the government finances its public investment using both income taxation and seigniorage. Arguments presented in this paper show that public investment financed by seigniorage gradually pulls up the growth rate of consumption and overshoots...
Persistent link: https://www.econbiz.de/10005823480
We examine how the overlap of tax bases in a federal economy affects economic growth. In our model the central and local governments have different objectives and each government finances its own public service using taxes levied on the same income tax base. The optimal tax rate for the...
Persistent link: https://www.econbiz.de/10005823454
This paper analyzes the short-term effects of fiscal adjustments on macroeconomic aggregates for a panel of 20 OECD countries during 1970--2008. We find that episodes of budget consolidation have an insignificant impact on growth and consumption. On the other hand, fiscal adjustments are...
Persistent link: https://www.econbiz.de/10010628257
We compare a social security system where people can retire at an age of their own choice with one in which there is a legal retirement age elected through a majority voting process. We show that individuals prefer a legal retirement age higher than the one they would choose in the flexible...
Persistent link: https://www.econbiz.de/10010903126
Adopting a portfolio choice approach to pension design, we derive illuminating closed form solutions for optimal pay-as-you-go social security programs. We demonstrate that the nature of the implied risk-sharing effects and their magnitudes are sensitive to the stochastic specification of...
Persistent link: https://www.econbiz.de/10010903129
We propose an extended pay-as-you-go social security system that conditions pension benefits on the aggregate wage sum and on the wage of one's children. The latter increases parents' incentives to provide their children with good within-family education. However, since wages depend...
Persistent link: https://www.econbiz.de/10005764445
Individuals in most all countries face a wide range of direct taxes on their income, especially variants of the individual income tax and payroll taxes. For the income tax, attempts are often made to reduce the compliance and administrative costs of the tax by using presumptive, or simplified,...
Persistent link: https://www.econbiz.de/10005764460
This paper develops an overlapping-generations model characterized by endogenous growth, unemployment, and pollution. The paper focuses on the replacement ratio, which measures the proportion of after-tax work earnings replaced by unemployment benefits, and considers a replacement-ratio-neutral...
Persistent link: https://www.econbiz.de/10005764468
Using an OLG model with pension system and unemployment insurance, this paper analyses the effect of low-skilled immigration (regular and irregular) shocks on the wellbeing of the native people. We show that low-skilled immigration benefits the pensioners of the initial period and skilled native...
Persistent link: https://www.econbiz.de/10005764469
The paper aims to assess tax-favored retirement accounts in a general-equilibrium overlapping-generations economy with idiosyncratic income risk and borrowing constraints. Our simulations indicate that tax-favored retirement accounts as implemented in many OECD countries will have a significant...
Persistent link: https://www.econbiz.de/10005764474