The Aging Population and the Size of the Welfare State

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The Aging Population and the Size of the Welfare
State

• Assaf Razin, Efraim Sadka, and Phillip Swagel

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Equilibrium with an Exogenous Labor Income Tax
Innate ability parameter
CDF of the innate ability parameter
Cutoff level of e
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Life-time income
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Political-economy determination of the capital
income tax
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The Dependency Ratio and the Labor Income Tax
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