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Economic and Politico-Economic Equivalence of Fiscal Policies

Author

Listed:
  • Dirk Niepelt

    (Study Center Gerzensee)

  • Martin Gonzalez-Eiras

    (Universidad de San Andres)

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.

Suggested Citation

  • Dirk Niepelt & Martin Gonzalez-Eiras, 2011. "Economic and Politico-Economic Equivalence of Fiscal Policies," 2011 Meeting Papers 58, Society for Economic Dynamics.
    • Handle: RePEc:red:sed011:58
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    References listed on IDEAS

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    Cited by:

    1. Gonzalez-Eiras, Martín & Niepelt, Dirk, 2012. "Ageing, government budgets, retirement, and growth," European Economic Review, Elsevier, vol. 56(1), pages 97-115.
    2. Martín Gonzales-Eiras & Dirk Niepelt, 2007. "Population Ageing, Government Budgets, and Productivity Growth in Politico-Economic Equilibrium," Working Papers 07.05, Swiss National Bank, Study Center Gerzensee.

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    More about this item

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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