Showing 1 - 6 of 6
In earlier literature, the suggested Pareto improvements in pay-as-you- go (PAYG) systems have relied on the presence of externalities or the possibility of intragenerational redistribution. We show that neither assumption is necessary in an economy with intergenerational trade in a fixed factor...
Persistent link: https://www.econbiz.de/10005076589
Both current and especially new member states of the European Union face incentives to distort the provision of public education away from internationally applicable education towards country-specific skills. This would mean educating too few engineers, economists and doctors, and too many...
Persistent link: https://www.econbiz.de/10005125879
I analyze simultaneous voting on the wage tax rate and investment in public education using a model with three overlapping generations and ability differences inside each cohort. Wage tax revenue finances public education and social security benefits. I derive the results both for a...
Persistent link: https://www.econbiz.de/10005125919
The mobility of labor reduces national incentives to invest in internationally applicable education. Such effects may be especially severe for the prospective new member states of the European Union. The European Union could overcome this by allowing countries to institute graduate taxes or...
Persistent link: https://www.econbiz.de/10005125946
We propose a dynamic general equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social services). Our analysis identifies a so far ignored dynamic cost arising from distortions in time allocation over the...
Persistent link: https://www.econbiz.de/10005412453
We analyze the topical question of how the compensation of elected politicians affects the set of citizens choosing to run. To this end, we develop a sparse and tractable citizen-candidate model of representative democracy with ability differences, informative campaigning and political parties....
Persistent link: https://www.econbiz.de/10005560979