Politico-economic equivalence

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Politico-economic equivalence. / Gonzalez Eiras, Martin; Niepelt, Dirk.

In: Review of Economic Dynamics, Vol. 18, No. 4, 10.2015, p. 843-862.

Research output: Contribution to journalJournal articleResearchpeer-review

Harvard

Gonzalez Eiras, M & Niepelt, D 2015, 'Politico-economic equivalence', Review of Economic Dynamics, vol. 18, no. 4, pp. 843-862. https://doi.org/10.1016/j.red.2015.08.001

APA

Gonzalez Eiras, M., & Niepelt, D. (2015). Politico-economic equivalence. Review of Economic Dynamics, 18(4), 843-862. https://doi.org/10.1016/j.red.2015.08.001

Vancouver

Gonzalez Eiras M, Niepelt D. Politico-economic equivalence. Review of Economic Dynamics. 2015 Oct;18(4):843-862. https://doi.org/10.1016/j.red.2015.08.001

Author

Gonzalez Eiras, Martin ; Niepelt, Dirk. / Politico-economic equivalence. In: Review of Economic Dynamics. 2015 ; Vol. 18, No. 4. pp. 843-862.

Bibtex

@article{0ac5a988049741a5bd65877059807f52,
title = "Politico-economic equivalence",
abstract = "Traditional {"}economic equivalence'' results, like the Ricardian equivalence proposition, define equivalence classes over exogenous policies. We derive {"}politico-economic equivalence{"} conditions that apply in environments where policy is endogenous and chosen sequentially. A policy regime and a state are equivalent to another such pair if both pairs give rise to the same allocation in politico-economic equilibrium. The equivalence conditions help to identify factors that render institutional change non-neutral and to construct politico-economic equilibria in new policy regimes. We exemplify their use in the context of several applications, relating to social security reform, tax-smoothing policies and measures to correct externalities.",
keywords = "Faculty of Social Sciences, Equivalence, Politico-economic equilibrium, Tax policy, Government debt, Social security reform",
author = "{Gonzalez Eiras}, Martin and Dirk Niepelt",
note = "JEL Classification: E62, H55, H63",
year = "2015",
month = "10",
doi = "10.1016/j.red.2015.08.001",
language = "English",
volume = "18",
pages = "843--862",
journal = "Review of Economic Dynamics",
issn = "1094-2025",
publisher = "Academic Press",
number = "4",

}

RIS

TY - JOUR

T1 - Politico-economic equivalence

AU - Gonzalez Eiras, Martin

AU - Niepelt, Dirk

N1 - JEL Classification: E62, H55, H63

PY - 2015/10

Y1 - 2015/10

N2 - Traditional "economic equivalence'' results, like the Ricardian equivalence proposition, define equivalence classes over exogenous policies. We derive "politico-economic equivalence" conditions that apply in environments where policy is endogenous and chosen sequentially. A policy regime and a state are equivalent to another such pair if both pairs give rise to the same allocation in politico-economic equilibrium. The equivalence conditions help to identify factors that render institutional change non-neutral and to construct politico-economic equilibria in new policy regimes. We exemplify their use in the context of several applications, relating to social security reform, tax-smoothing policies and measures to correct externalities.

AB - Traditional "economic equivalence'' results, like the Ricardian equivalence proposition, define equivalence classes over exogenous policies. We derive "politico-economic equivalence" conditions that apply in environments where policy is endogenous and chosen sequentially. A policy regime and a state are equivalent to another such pair if both pairs give rise to the same allocation in politico-economic equilibrium. The equivalence conditions help to identify factors that render institutional change non-neutral and to construct politico-economic equilibria in new policy regimes. We exemplify their use in the context of several applications, relating to social security reform, tax-smoothing policies and measures to correct externalities.

KW - Faculty of Social Sciences

KW - Equivalence

KW - Politico-economic equilibrium

KW - Tax policy

KW - Government debt

KW - Social security reform

U2 - 10.1016/j.red.2015.08.001

DO - 10.1016/j.red.2015.08.001

M3 - Journal article

VL - 18

SP - 843

EP - 862

JO - Review of Economic Dynamics

JF - Review of Economic Dynamics

SN - 1094-2025

IS - 4

ER -

ID: 143185614