Politically Credible Social Insurance
نویسندگان
چکیده
This paper considers political credibility of allocations in settings with dynamic private information. It embeds a benchmark dynamic moral environment into political economy games which feature repeated voting over mechanisms. Optimal politically credible allocations are shown to solve virtual planning problems with social discount factors in excess of the private one. JEL codes: C73, D72, D82, E61
منابع مشابه
Credibility of Social Network Sites for Political Information Among Politically Interested Internet Users
Scholars have confirmed that political candidates are increasingly turning to social network sites (SNS) to persuade voters to vote for them, and that these sites have become prominent sources of political information. But a fundamental question arises about the sustainability of social networks as a campaign tool: Howmuch do users trust the information they find there?This study employed an on...
متن کاملThe politics of redistributive social insurance
This paper analyses the political support for a social insurance that includes elements of redistribution when there exists an imperfect private insurance alternative. Individuals differ both in their income and risk. The social insurance is compulsory and charges an income-related contribution with pooling of risks. The private insurance is voluntary and charges a contribution based on individ...
متن کاملThe Birth and Growth of the Social-insurance State: Explaining Old-age and Medical Insurance across Countries
We seek to explain why countries have adopted national Old-Age Insurance and Health Insurance programs. Theoretical work has posited several factors that could lead to this adoption: the strain from expanding capitalism; the need for political legitimacy; the desire to transfer to similar people; increased wealth; and the outcome of leviathan government. We relate the probability of a country’s...
متن کاملThe Economic Roots of Political Underdevelopment in the Middle East: A Historical Perspective
Key institutions of the pre-modern Middle Eastern economy, all grounded in Islamic law, blocked the development of democratic institutions. This talk identifies three mechanisms that played critical roles. Islam's original tax system failed to produce lasting and credible constraints on governance. The waqfs (Islamic trusts) founded to provide social services to designated constituencies were p...
متن کاملPrivatizing Social Security
This paper studies the political sustainability of the existing pay-as-you-go Social Security system in the face of recent demographic patterns. We analyze different approaches to privatizing the system and consider what it would require for them to be politically implementable. The analysis is based on an overlapping-generations economy where an initial generation would choose to implement a p...
متن کامل