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We here expand the static tax competition models in symmetric small regions, which were indicated by Zodrow and Mieszkowski (1986) and Wilson (1986), to a dynamic tax competition model in large regions, taking consideration of the regional asymmetry of productivity of public capital and the...
Persistent link: https://www.econbiz.de/10011574922
numerical policy evaluation. It integrates four strands of research: (1) the Ramsey model of consumer behaviour, (2) Tobin's q-theory … of investment, (3) Romer's theory of endogenous growth through horizontal product innovation, and (4) the Dixit …-Stiglitz-Ethier theory of intra-industry trade. Integrating the latter into a multiregional model is also an essential ingredient of the New …
Persistent link: https://www.econbiz.de/10011527388
Recently, there has been wide interest in the "economics" of population aging. Demographic change has crucial consequences for economic behavior; it e.g. implies that consumption and investment decisions vary over the life-cycle. The latter has important implications for economic growth, whereas...
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This paper analyses whether the severe demographic change in Germany causes its high current account surpluses. An ageing population both increases the supply and lowers demand of capital in an economy. Due to a longer life span individuals save more. Fewer workers reduce the optimal capital...
Persistent link: https://www.econbiz.de/10012266985
Differences in life expectancy between high and low socioeconomic groups are often large and have widened recently in many countries. Such longevity gaps affect the actuarial fairness and progressivity of public pension systems. However, behavioral responses to longevity and policy complicate...
Persistent link: https://www.econbiz.de/10012314266
Ageing of most societies is driven by two factors: (1) birth rates are declining and (2) people are living longer. These developments have substantial effects on economies and, in particular, on the funding of our living standards in retirement. We develop an overlapping generation model in...
Persistent link: https://www.econbiz.de/10012317293