This paper analyzes the dynamic politico-economic equilibrium of a model where repeated voting on social security and the evolution of household characteristics in general equilibrium are mutually affected over time. In particular, we incorporate within-cohort heterogeneity in a two-period...

Using a panel data set of effective tax rates that are directly comparable across OECD countries and over time, we investigate the redistributive effect of labour, consumption and capital tax rates. We show that what matters from the point of view of redistribution is the tax mix rather than the...

Intergenerational inequality and old-age poverty are salient issues in contemporary China. China's aging population threatens the fiscal sustainability of its pension system, a key vehicle for intergenerational redistribution. We analyze the positive and normative effects of alternative pension...

This paper uses a cohort microsimulation model to analyse intragenerational distributional effects of a shift from a defined benefit pay‐as‐you‐go pension system that includes flat rate component and length of pensionable service component to a pension system with contribution based...

We present new empirical evidence on the distribution of earnings, income and wealth among entrepreneurs in Germany. We document that both earnings and income are more concentrated among entrepreneurs than among workers and describe a large-scale overlapping-generations model that can replicate...

Using an empirical age-period-cohort model we analyze the effects of different Pay-As-You-Go (PAYG) public pension systems on financial imbalance, on inequality in permanent income, and on the rate of return of social security assets of heterogeneous agents in terms of gender and education....

We study the impact of a government spending shock on the distribution of income and wealth between cohorts in a dynamic stochastic Overlapping Generations model with two types of households, Ricardian households and rule-of-thumb consumers. We demonstrate that an unexpected increase in...

This paper examines the non-environmental welfare effects of introducing a revenue- neutral carbon tax policy. Using a life cycle model, we find that the welfare effects of the policy differ substantially for agents who are alive when the policy is enacted compared to those who are born into the...