Arbeitspapier
Renegotiation of Social Contracts by Majority Rule.
We consider renegotiation of social earnings insurance arrangements by majority voting in an economy where ex-ante identical individuals make unobservable private investments in education. We show that voting-based renegotiation can result in a higher expected level of investment in comparison to the case where social insurance is determined by an appointed social planner. We also find that, with voting-based renegotiation, the availability of costly ex-post information about private investment can help overcome commitment problems. These findings call into question the practice of using a representative-consumer approach when modelling dynamic policy problems in large economies.
- Language
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Englisch
- Bibliographic citation
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Series: EPRU Working Paper Series ; No. 2000-15
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Anderberg, Dan
Perroni, Carlo
- Event
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Veröffentlichung
- (who)
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University of Copenhagen, Economic Policy Research Unit (EPRU)
- (where)
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Copenhagen
- (when)
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2000
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Anderberg, Dan
- Perroni, Carlo
- University of Copenhagen, Economic Policy Research Unit (EPRU)
Time of origin
- 2000
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