We analyze the German ecotax package in a model of overlapping generations and majority voting. The package consists of the ecotax rate and the budgetary rule which assigns a fraction of the tax revenue to the reduction of pension contributions while holding pension benefits constant. The old...

So far the economic literature has concentrated on analyzing the income tax and pension scheme in isolation. The present paper asks how both transfer schemes should be optimally designed in a society where individuals differ in productivity and rationality. Rational agents (if not liquidity...

We build a two-dimensional political economy model to explain the provision and financing of long-term care and income redistribution. Voting agents differ in need and income opening up two conflicts: one sets families with disabled parents, who are in favor of a public long-term care program,...

This paper examines whether myopia (misperception of the old age dependency risk) and private insurance market loading costs can justify public long-term care (LTC) provision and/or the subsidization of private insurance. Individuals differ in dependency risk, productivity and degree of risk...

The perception of health risks and risky health behaviors are closely associated. In this paper, we investigate the accuracy of health risk perceptions among obese individuals, aged 50–62 years. We compare subjective risk perceptions for various diseases elicited in the American...

Abstract There is ample empirical evidence indicating that a substantial fraction of the population exhibits social preferences. Recent work also shows that social preferences influence the effectiveness of incentives in labor relations. Hence, when making contracting decisions, employers should...

The standard contest model in which participants compete in a single dimension is well understood and documented. Multi-dimension extensions are possible but are liable to increase the complexity of the contest structure, mitigating one of its main advantages: simplicity. In this paper we...

We study equilibrium in a multistage race in which players compete in a sequence of simultaneous move component contests. Players may win a prize for winning each component contest, as well as a prize for winning the overall race. Each component contest is an all-pay auction with complete...