There is a strong interdependency between public transfers and the shape of the economic lifecycle because these transfers facilitate and enable the decoupling of production and consumption over long time periods, most notably in childhood and retirement. The design of public transfers obviously...

In this work we simulate the effects of tax autonomy of the Austrian states on the levels of public employment in each state. We show that depending on the strength of the public sector lobby, tax autonomy would require reduction of employment in the public sector between 25% and 35% of the...