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Voting on public pensions with hands and feet

Author

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  • Alexander Haupt
  • Wolfgang Peters

Abstract

Aging changes the political power in a democracy in favor of the older generations. With free labor mobility like that of the EU, the success of the gerontocracy is, nevertheless, limited by migration of the young generations. This connection between political voting and voting with the feet is analyzed in a two-country model with overlapping generations. The interregional competition on public pensions yields premium payments which are larger when the young generations' migration decisions take the impact on future pensions into account (strategic migration) than when these decisions are made myopically. The paper also pays attention to migration (in-)efficiency and to the implications of harmonization principles. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Alexander Haupt & Wolfgang Peters, 2003. "Voting on public pensions with hands and feet," Economics of Governance, Springer, vol. 4(1), pages 57-80, April.
  • Handle: RePEc:spr:ecogov:v:4:y:2003:i:1:p:57-80 DOI: 10.1007/s101010100043
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    Cited by:

    1. repec:kap:pubcho:v:171:y:2017:i:3:d:10.1007_s11127-017-0442-z is not listed on IDEAS
    2. Tim Krieger & Thomas Lange, 2010. "Education policy and tax competition with imperfect student and labor mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, pages 587-606.
    3. Alexander Haupt & Eckhard Janeba, 2003. "Bildung im Zeitalter mobilen Humankapitals," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(2), pages 173-187.
    4. Kira Boerner & Silke Uebelmesser, 2007. "Migration and the welfare state: The economic power of the non-voter?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(1), pages 93-111, February.
    5. Montén, Anna & Thum, Marcel, 2010. "Ageing municipalities, gerontocracy and fiscal competition," European Journal of Political Economy, Elsevier, pages 235-247.
    6. Haupt, Alexander & Peters, Wolfgang, 2005. "Restricting preferential tax regimes to avoid harmful tax competition," Regional Science and Urban Economics, Elsevier, vol. 35(5), pages 493-507, September.

    More about this item

    Keywords

    Key words: Interregional competition on public pensions; migration; labor mobility; gerontocracy; JEL Classification Numbers: D72; F22; H55;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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