Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/51947
Authors: 
Bossi, Luca
Gumus, Gulcin
Year of Publication: 
2011
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5909
Abstract: 
In this paper, we set up a three-period stochastic overlapping generations model to analyze the implications of income inequality and mobility for demand for redistribution and social insurance. We model the size of two different public programs under the welfare state. We investigate bidimensional voting on the tax rates that determine the allocation of government revenues among transfer payments and old-age pensions. We show that the coalitions formed, the resulting political equilibria, and the demand for redistribution crucially depend on the level of income inequality and mobility.
Subjects: 
redistribution
mobility
inequality
structure induced equilibrium
JEL: 
D72
H53
H55
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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