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This paper presents a simple model that displays a joint determination of income inequality and intergenerational mobility affected by redistributive taxation. The model shows that a larger redistribution improves equality and utility and enhances mobility when the poor are financially...
Persistent link: https://www.econbiz.de/10005109505
This paper characterizes a stationary Markov-perfect political equilibrium where agents vote over income taxation that distorts educational investment. Agents become rich or poor through educational investment, and the poor have a second chance at success. The results show the following...
Persistent link: https://www.econbiz.de/10005774300
This paper focuses on how education costs affect the political determination of redistribution policy via individual decision-making on education. For cases of high costs, there are multiple equilibria: the high-tax equilibrium featured by the minority of highly educated individuals and a large...
Persistent link: https://www.econbiz.de/10005710068
This paper develops a model where income inequality and intergenerational mo- bility are jointly determined via redistributive politics. The model includes two key factors: accessibility of tertiary education for poor-born agents and multiple self- ful?lling expectations of agents. Given these...
Persistent link: https://www.econbiz.de/10008492735
This paper introduces an overlapping-generations model with earnings hetero- geneity and borrowing constraints. The labor income tax and the allocation of tax revenue across social security and forward intergenerational public goods are determined in a bidimensional majoritarian voting game...
Persistent link: https://www.econbiz.de/10008531866
Countries with higher implicit taxes on continued work are associated with lower labor force participation rates of the elderly. This paper constructs a politicoeconomic model that accounts for this feature based on multiple, self-fulfilling expectations of agents. In this model, agents are...
Persistent link: https://www.econbiz.de/10008534511
This paper develops an overlapping-generations model including wage inequality within a generation and intra- and intergenerational resource reallocation via social security. Based on the concept of a stationary Markov perfect equilibrium, the paper focuses on the feedback mechanism between...
Persistent link: https://www.econbiz.de/10005248636
This paper analyzes the determinants of government debt and social security for the old in a closed-economy, overlapping-generation model. Under the probabilistic voting, the model presents (i) an intergenerational link of resource allocation via debt and social security; (ii) multiple political...
Persistent link: https://www.econbiz.de/10009372416
Persistent link: https://www.econbiz.de/10001254971
Persistent link: https://www.econbiz.de/10001216263