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- W96001768 abstract "This paper presents an overlapping-generation model featuring probabilistic vot- ing over two policy issues, namely, pension and public goods. To capture the forward-looking behavior of voters, we characterize a Markov-perfect political equi- librium in which the two policy variables are conditioned on a payoff-relevant state variable, that is, capital. It is shown that (i) as the population ages, the pension- to-GDP ratio and the growth rate of capital increase, but the public goods-to-GDP ratio decreases and (ii) the pension-to-GDP and public goods-to-GDP ratios are too high and the growth rate too low from the standpoint of social welfare." @default.
- W96001768 created "2016-06-24" @default.
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- W96001768 date "2014-04-01" @default.
- W96001768 modified "2023-09-27" @default.
- W96001768 title "Economic Growth and the Politics of Intergenerational Redistribution" @default.
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