Reference no: EM131472216
Social Security with Growth:
Households live for two periods, so at every time t there are two generations alive, young (y) and old (o). Households preferences are given by
U=2 cyt +2 cot+1.
Each generation born at time t has size Nt, where Nt+1 = (1 + n) Nt, i.e. n is the population growth rate. In each period t, young households receive an endowment of income yt, consume cyt and save for retirement an amount st+1. Young workers have no initial wealth. The old households are retired and consume cot+1. They consume what they have saved as young plus the interests cumulated at the fixed rate r. Income grows over time at rate g, i.e. yt+1 = (1 + g) yt, so every generation has larger income than the previous generation by a factor (1 + g) .
a) Solve for the optimal consumption choices {cy,co} as a function of (y,r) in this economy without social security.
Suppose the government introduces a pay-as-you-go social security system that works as follows. At every date t, the government taxes young workers' income at rate τ and redistributes these tax revenues equally (i.e., lump-sum) to the old at time t as pension transfers.
b) Solve for the optimal consumption choices {cy,co} as a function of (y,r,τ.g,n) in the economy with social security.
c) Find a parametric condition under which introducing social security makes every agent better off. Explain this condition.
Government employs chartered accounts
: The revenue department of a state government employs Chartered Accounts (CA) to audit corporate tax returns and Book Keepers(BK) to audit individual returns.
|
Discuss about the set of observations
: ANOVA is a statistical method used where the variation in a set of observations is divided into different components.
|
Which factors decrease because of protectionism
: Which factors decrease because of protectionism? choices are competition, job security, domestic production, goodwill trade partners, importation of goods.
|
Check request and give reason that request is valid or not
: Goldberg, a minor, hired an attorney to sue Perlmuter for personal injuries. When the case was settled, the attorney asked for his fee.
|
Social security with growth
: Households live for two periods, so at every time t there are two generations alive, young (y) and old (o). Households preferences are given by
|
Efficacy of managed care plans in containing healthcare cost
: Describe the evolution of managed care and the forces that have driven its evolution. Evaluate the efficacy of managed care plans in containing healthcare costs
|
Discuss about the analysis of variance
: The analysis of variance, or ANOVA test, is a way to find out if study results are significant and helps you figure.
|
What does the first field of a cookie contain
: What does the first field of a cookie contain? Which of the following is NOT a for the difficulties in prosecutions of computer-related crimes?
|
Discourage the use of cars
: Have our politicians set the right incentives? Should the gas tax be higher to discourage the use of cars?
|