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On the Political Economy of Social Security and Public Education

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  • Panu Poutvaara

    (CEBR)

Abstract

I analyze simultaneous voting on the wage tax rate and investment in public education using a model with three overlapping generations and ability differences inside each cohort. Wage tax revenue finances public education and social security benefits. I derive the results both for a once-and-for-all voting system with commitment and for repeated voting. My model allows demographic change and productivity growth. Even when cohorts are of the same size, the median voter may be a young uneducated citizen.

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File URL: http://128.118.178.162/eps/pe/papers/0303/0303001.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Public Economics with number 0303001.

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Length: 36 pages
Date of creation: 03 Mar 2003
Date of revision:
Handle: RePEc:wpa:wuwppe:0303001

Note: Type of Document - Pdf; prepared on IBM PC; to print on Xerox3N1; pages: 36 ; figures: included. This is a revised version of CESifo Working Paper No. 424 (February 2001) and CEBR Discussion Paper 2002-02.
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Web page: http://128.118.178.162

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Keywords: Social security; Public education; Voting; Implicit intergenerational contract; Structure-induced equilibrium;

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