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  • Jean-Olivier Hairault, François Langot, +7 authors Andrew Samwick
  • 2008
This paper presents empirical evidence and a theoretical foundation in favor of the view that the retirement age decision affects older workers' employment prior to retirement. To the extent that there are search frictions on the labor market, the return on jobs is determined by their expected duration: the time to retirement is then key to understanding(More)
Many assemblies grant one or more of their members the right to block decisions even when a proposal has secured the necessary majority—a veto right. In this paper, I analyze the consequences of veto power in an infinitely repeated divide-the-dollar bargaining game with an endogenous status quo policy. The division of the dollar among legislators is(More)
We study the impact of fiscal constitutions on intergenerational transfers in an overlapping generation model with linear technology. Transfers represent outcomes of a voting game among selfish agents. Policies are decided one period at a time. Majoritarian systems, which accord voters maximum fiscal discretion, sustain all individually rational(More)
This paper investigates whether or not the adoption of the Euro has facilitated the introduction of structural reforms, de…ned as deregulation in the product markets and liberalization and deregulation in the labor markets. After reviewing the theoretical arguments that may link the adoption of the Euro and structural reforms, we investigate the empirical(More)
Several explanations have been proposed for why voters continue to support unfunded social security systems. Browning (1975) suggests that the extremely large unfunded pension systems of most democracies depend on the existence of a voting majority composed of middle-aged and older people who fail to fully internalize the cost of financing the system. In(More)
E conomic models with multiple equilib-ria, such as Diamond and Dybvig (1983), have become increasingly useful in analyzing volatility in financial markets and in business cycles. In many of these models, indeterminacy is a result of incomplete financial markets or technological nonconvexities. Here we identify economic policy discretion to be another(More)
This Discussion Paper is issued under the auspices of the Centre's research programme in PUBLIC POLICY. Any opinions expressed here are those of the author(s) and not those of the Centre for Economic Policy Research. Research disseminated by CEPR may include views on policy, but the Centre itself takes no institutional policy positions. The Centre for(More)
della Camera for their help and assistance with the collection and the interpretation of the data. A special thank to the Fondazione Rodolfo De Benedetti for their help and financial support. Landi also acknowledges the financial support from the Office of Research at Singapore Management University, and the hospitality of Servizio Prerogative e Immunita'(More)
The opinion expressed in the working papers are those the authors alone, and not those of the Institute which takes non institutional policy position, nor of CEPR, NBER or Università Bocconi. Abstract What is the future of social security systems in OECD countries? In our view, the answer belongs to the realm of politics. We evaluate how political(More)
This paper examines how political constraints can shape the social security system under different demographics. A steady-state mapping between relevant economic and demographic variables and the social security tax rate resulting from a majority voting is provided. I calibrate an OLG model to the U.S. economy. Calculations using census population and(More)