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In an overlapping generations economy with incomplete insurance markets, the introduction of an employment fund-akin to the one introduced in Austria in 2003, also known as 'Austrian backpack'-can enhance production efficiency and social welfare. It complements the two classical systems of...
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In this paper, we develop a dynamic politico-economic theory of social security to address two questions. First, how is …
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We develop a dynamic politico-economic theory of welfare state, featuring three groups of voters: skilled workers …
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