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This paper examines heterogeneous effects of uncertainty of the U.S. tax policies across income classes. We construct a multi-class general equilibrium stochastic OLG model with a stochastic process of effective tax rates. In accordance with empirical evidence, the model includes two types of...
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There are theoretical foundations which allow hypothesizing on a positive association of life expectancy or retirement age with income. If both cannot be falsified, the relationship of income and the internal rate of return of a public pension system is not straight forward. By application of a...
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We investigate the differential impact that pension systems have on the labor supply and the accumulation of physical and human capital for individuals that differ by their learning ability and levels of life expectancy. Our analysis is calibrated to the US economy using a general equilibrium...
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to borrowers. In this study, we consider redistribution as a channel for aggregate and welfare effects of inflation. We …-generations model of the U.S. economy. While the redistribution shock is zero sum, households react asymmetrically, mostly because … increase in savings. Even though inflation-induced redistribution has a persistent negative effect on output, it improves the …
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are caused by ex-ante differences in life expectancy. However, these pension reforms may themselves induce redistribution …
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