Fernández-Huertas Moraga, Jesús (contributor); … - 2004
.3 Public sector
In each period, the government levies labor income taxes and pays pension
benefits to retirees, finances public … and at the same time they either pay a
lump-sum tax or receive a lump-sum transfer. Labor income taxation is charac …-age benefits so that the tax system
functions as a pay-as-you-go public pension scheme, and the case of public debt,
whereby the …