Emanuele, Canegrati (2007): A Single-Mindedness model with n generations.
Download (150Kb) | Preview
In this paper I will analyse the redistribution of income amongst n generations using the Single-mindedness Theory. I will introduce a new expression for the balanced-budget constraint, no longer based on lump- sum transfers as in the traditional literature, but rather on more realistic labour income taxation. Since the Government has to clear the budget, some generations obtain a benefit, whilst some other must pay the entire cost of social secutiry systems. I will demonstrate that generations which are more single-minded on leisure are the most better off since they are more able to capture politicians in the political competition. Further- more, it could be the case that candidates are not forced to undertake the same policies in equilibrium and I will demonstrate that this result holds only once an endogenous density function for individual preferences for politicians is considered.