nep-dge New Economics Papers
on Dynamic General Equilibrium
Issue of 2005‒02‒27
three papers chosen by
Christian Zimmermann
University of Connecticut

  1. Perfectly Competitive Innovation (Growth) By Michele Boldrin; David K Levine
  2. A Quantitative Investigation of the Laffer Curve on the Continued Work Tax: The French Case By Hairault, Jean-Olivier; Langot, François; Sopraseuth, Thepthida
  3. Competition and Growth in a Vintage Knowledge Model By Peter Funk

  1. By: Michele Boldrin; David K Levine
    Date: 2005–02–22
  2. By: Hairault, Jean-Olivier (University of Paris I, EUREQUA, CEPREMAP and IZA Bonn); Langot, François (University of Maine, GAINS and CEPREMAP); Sopraseuth, Thepthida (University of Evry, EPEE and CEPREMAP)
    Abstract: It is often argued that the tax on continued work should be removed by implementing actuarially fair schemes. However, these schemes cannot help fund the expected Social Security deficit. This paper proposes to give individuals only a fraction of the marginal actuarially fair incentives in case of postponed retirement. Social Security then faces a tradeoff between giving enough incentives to make individuals actually delay retirement and giving little increase in pensions in order to help finance its expected deficit. This trade-off is captured by a Laffer curve that we quantify on French data. Furthermore, we analyze the interactions between wealth and retirement behavior.
    Keywords: retirement behavior and wealth, actuarially fair benefits
    JEL: H31 H55 J26
    Date: 2005–02
  3. By: Peter Funk
    Abstract: This paper models the relationship between growth, technology-lifetime, entry, and competition in a vintage-knowledge model of endogenous growth and perfect competition. The model has a unique steady state REE equilibrium. Variations of R&D-efficiency lead to a negative relation between growth and vintage-lifetime and indicate a non-monotonic relation between growth and competition. A shift of population size and its growth rates have qualitatively different consequences here than in standard models. The extent of entry constitutes a buffer, neutralizing the effect of population size or population growth rates on per-capita income levels and growth rates.
    Keywords: Endogenous Growth, Vintage-Model, Perfect Competition
    JEL: D40 D90 O30 O40
    Date: 2005–01–30

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