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Population aging puts significant pressure on social security systems that are based mainly on a pay-as-you-go (PAYG) formula and determined by the political process in which both retirees and future retirees participate. This paper demonstrates that in an economic and demographic steady state,...
Persistent link: https://www.econbiz.de/10014400549
The extent of taxation and redistribution policy is generally determined at a political-economy equilibrium by a … tax burden and less redistribution than no migration, even though the migrants join the pro-tax coalition …
Persistent link: https://www.econbiz.de/10014403302
The aim of this paper is to evaluate the welfare gains from financial integration for developing and emerging market economies. To do so, we build a stochastic endogenous growth model for a small open economy that can (i) borrow from the rest of the world, (ii) invest in foreign assets, and...
Persistent link: https://www.econbiz.de/10014399779
about the future, and attitudes about redistribution. We find that women, non-college educated, the unemployed, and those in …
Persistent link: https://www.econbiz.de/10012518743
Are preferences for reforms driven by individuals' own endowments or beliefs? To address this question, we conducted a cross-country survey on people's opinions on employment protection legislation-an area where reform has proven to be difficult and personal interests are at stake. We find that...
Persistent link: https://www.econbiz.de/10013170248
This note provides an overview of recent studies that have begun to investigate how differing moral perspectives shape attitudes toward tax and spending policies. Recent advances in evolutionary moral psychology and their application to survey-based economic analysis yield promising insights....
Persistent link: https://www.econbiz.de/10012795085
discussion of fiscal redistribution within the standard social welfare framework, which lends itself to a transparent and … practical evaluation of the extent and determinants of fiscal redistribution. Differences in fiscal redistribution are … determine the factors explaining differences in their fiscal redistribution and to discuss patterns in fiscal redistribution …
Persistent link: https://www.econbiz.de/10012009467
This paper discusses how the structure of the tax system affects its progressivity. It suggests a measure of progressive capacity of tax systems, based on the Kakwani index, but independent of pre-tax income distributions. Using this and other progressivity measures, the paper (i) documents a...
Persistent link: https://www.econbiz.de/10011978377
This paper explores the revenue-raising aspect of progressive taxation and derives, on the basis of a simple model, the optimal degree of tax progressivity where the tax revenue is used exclusively to finance (perfectly) targeted transfers to the poor. The paper shows that not only would it be...
Persistent link: https://www.econbiz.de/10014400295
Data for the United States and countries in Western Europe indicate a negative correlation between the dependency ratio and both labor tax rates and the generosity of social transfers, after controlling for other factors that influence the size of the welfare state. This is despite the increased...
Persistent link: https://www.econbiz.de/10014399587