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Aging and Lobbying: Implications for Social Security

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  • Paola Profeta

    () (Università di Pavia
    Università Bocconi, Milano)

Abstract

What is the impact of demographic changes on lobbying activities, when two opposite groups compete for obtaining a transfer from each other? This paper compares two lobbying models: good-intensive and time-intensive. Depending on the specification of the political technology of the pressure function, the two models obtain different predictions for the impact of demographic changes on the equilibrium size of the transfer. These results have strong implications for the PAYG social security transfers. If the pressure is good-intensive, an aging population implies a smaller social security transfer. If instead the pressure is time-intensive and it displays decreasing marginal returns to size, aging has a hump-shaped impact on the per capita social security transfer

Suggested Citation

  • Paola Profeta, 2003. "Aging and Lobbying: Implications for Social Security," Rivista di Politica Economica, SIPI Spa, vol. 93(1), pages 149-194, January-F.
  • Handle: RePEc:rpo:ripoec:v:93:y:2003:i:1:p:149-194
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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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