Showing 1 - 10 of 28
This study extends the multi-country, politico-economic model of fiscal policy developed by Song, Storesletten, and Zilibotti (2012) to incorporate wage inequality within each country. In this extended framework, we present conflict within and across generations over fiscal policy and show that...
Persistent link: https://www.econbiz.de/10011122651
This paper introduces an overlapping-generations model with earnings hetero- geneity and borrowing constraints. The labor income tax and the allocation of tax revenue between social security and forward intergenerational public goods are determined in a bidimensional majoritarian voting game...
Persistent link: https://www.econbiz.de/10010837087
This paper presents a politico-economic model that includes a mutual link between life cycle earnings mobility and redistributive politics. The model demonstrates that when an economy features a high opportunity of upward mobility and high risk of downward mobility, it attains a unique...
Persistent link: https://www.econbiz.de/10010907613
This paper presents a simple model that displays a joint determination of income inequality and intergenerational mobility affected by redistributive taxation. The model shows that a larger redistribution improves equality and utility and enhances mobility when the poor are financially...
Persistent link: https://www.econbiz.de/10005109505
In this paper, we construct a simple dynamic two-party electoral competition model in which the degree of political instability is endogenously determined: which has never been studied so far. We consider the campaign contributions as stock variable which is gradually accumulated by both partyfs...
Persistent link: https://www.econbiz.de/10005773264
In this paper, we construct a simple dynamic two-party electoral competition model in which the degree of political instability is endogenously determined. We consider the campaign contributions as stock variable which is gradually accumulated by both partyfs direct investment and induced the...
Persistent link: https://www.econbiz.de/10005773291
This paper characterizes a stationary Markov-perfect political equilibrium where agents vote over income taxation that distorts educational investment. Agents become rich or poor through educational investment, and the poor have a second chance at success. The results show the following...
Persistent link: https://www.econbiz.de/10005774300
This paper focuses on how education costs affect the political determination of public policy via individual decision-making. The paper extends the model in Hassler, Storesletten, and Zilibotti (2007, Journal of Economic Theory; henceforth HSZ) by generalizing the cost function of education and...
Persistent link: https://www.econbiz.de/10005710065
In recent years, voter turnout has been decreasing in most industrial countries, and about 40% of all electors abstain from voting. This may affect income inequality and the GDP growth rate through a redistribution policy determined by majority voting. In this paper, we explore the reasons for...
Persistent link: https://www.econbiz.de/10005710067
This paper focuses on how education costs affect the political determination of redistribution policy via individual decision-making on education. For cases of high costs, there are multiple equilibria: the high-tax equilibrium featured by the minority of highly educated individuals and a large...
Persistent link: https://www.econbiz.de/10005710068