This paper analyzes how integrated labor markets affect the financing of higher education. For this, we employ a general-equilibrium model with overlapping generations and individuals who differ in their abilities. At the first stage, governments can choose the quality of education and the...

An unfunded social security system faces the major risk, sometimes referred to as "political risk," that future generations do not agree to contribute as much as expected. In order to account properly for this risk, the paper considers a political process in which the support to the system is...

Social security institutions implement intergenerational transfers and distribute risks over time. To compare various social security designs, we study an overlapping generations model with demographic shocks. Production takes place through a neoclassical production function subject to...