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Economic and Politico-Economic Equivalence of Fiscal Policies

Dirk Niepelt () and Martin Gonzalez-Eiras ()

No 58, 2011 Meeting Papers from Society for Economic Dynamics

Abstract: We apply the conditions for politico-economic equivalence in the context of wellknown models with the aim to understand when a change of policy regime is nonneutral even if policies in these regimes are equivalent from a purely economic perspective. Focusing specifically on the comparison of pay-as-you-go financed social security regimes versus regimes with explicit government debt, our analysis contributes towards a theory of social security reform.

Date: 2011
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Related works:
Working Paper: Economic and Politico-Economic Equivalence of Fiscal Policies (2012) Downloads
Working Paper: Economic and Politico-Economic Equivalence of Fiscal Policies (2008) Downloads
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