The paper develops an overlapping generations model with probabilistic aging of households. We define age as a set of personal attributes such as earnings potential, health and tastes that are characteristic of a person's position in the life-cycle. In assuming a limited number of different...

In the absence of financing frictions, profit taxes reduce investment by their effect on the user cost of capital. With finance constraints due to moral hazard, investment becomes sensitive to cash-flow and own equity of firms. We propose a corporate finance model of investment and derive three...

Alterung und Globalisierung erzwingen eine grundlegende Anpassung des Wohlfahrtsstaates. Eine Feinsteuerung der traditionellen Umlagesysteme kann den Negativkreislauf aus steigender Steuer- und Beitragsbelastung, Entmutigung der Arbeitsanreize und Erwerbsbeteiligung, und der Verlagerung der...