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Financing retirement benefits is probably the most significant fiscal challenge that governments in industrial economies will be facing in the next few decades. Social security reform has therefore become an important public policy issue for many countries and various reform proposals have been...
Persistent link: https://www.econbiz.de/10005069486
We use a general equilibrium life-cycle model with incomplete markets and heterogeneous agents to evaluate the macroeconomic and welfare implications of Defined Benefit (DB) versus Defined Contribution (DC) systems, and to investigate the effects of incremental reform within a particular system....
Persistent link: https://www.econbiz.de/10010746402
Aiyagari (1995) showed that long-run optimal fiscal policy features a positive tax rate on capital income in Bewley-type economies with heterogeneous agents and incomplete markets. However, determining the magnitude of the optimal capital income tax rate was considered to be prohibitively...
Persistent link: https://www.econbiz.de/10011109037
This paper studies the effects of a flat-tax reform in a dynamic, general equilibrium model with heterogeneous agents and occupational choice. Each agent has a choice to be a worker or to establish a firm and become an entrepreneur with a limited ability to borrow in financial markets. Because...
Persistent link: https://www.econbiz.de/10005069239
Using a two-agent model comprised of capitalists and workers, this paper examines the importance of imperfect competition in product and labour markets in determining the welfare effects of tax reform. The reform considered consists of eliminating the capital tax alongside a concurrent rise in...
Persistent link: https://www.econbiz.de/10010665917
This paper analyzes the welfare effects of unemployment insurance reforms in a general equilibrium incomplete market model. In particular, it decomposes the total welfare effect for each individual into different factors. I consider a model where the consumers face an uninsurable unemployment...
Persistent link: https://www.econbiz.de/10010719793
, France, Spain and Italy, from 1999 to 2013, estimating their long-term relationships. We focus on employment and unemployment … investment is the main policy instrument which can foster employment, prompting private investment and growth, exports can only …
Persistent link: https://www.econbiz.de/10011277371
The formation of the European Union (EU) is the one of the biggest political – economic events of the last 50 years. The aim of this study is to develop EU economy functioning system dynamic model. Main research method is system dynamics. General scheme of EU economy system dynamic model is...
Persistent link: https://www.econbiz.de/10011259562
unemployment, low employment turnover and high insurance can co-exist with an American-type steady state with low unemployment …, high employment turnover and low unemployment insurance. A calibrated version of the model features two distinct steady …
Persistent link: https://www.econbiz.de/10005648719
The contribution of aggregate demand to employment creation is a fact universally accepted in the specialty literature …, there being the idea that between aggregate demand and employment there is a direct and bivalent relationship. In our study …) on employment in Romania, in the period between 1990 and 2009. The results of this research show that, in Romania, in the …
Persistent link: https://www.econbiz.de/10010592966