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Using ADA roll call voting scores for the 1947-2006 period, I find that senators shirk in their last term. The degree of shirking is limited by political parties, which constrain the politician in his last term, and varies by post-Senate career choices. The results highlight the importance of political parties in the repeated game that is electoral politics. Adapted from the source document.

AbstractA culture of despair represents a negative feedback loop, where perceptions of high economic inequality result in declines in expectations of future success and, in turn, lower probabilities of favorable outcomes. We focus on the first link in that proposed causal chain, the relationship between economic inequality and expectations. Using a panel of youths and geographic variation in inequality, we find a link between inequality and expectations regarding educational outcomes. Our findings show that youth of low socioeconomic status (SES) are negatively affected by inequality. In short, we find support for the theory of a culture of despair.

This paper provides a technical description of the overlapping generations model used by the Joint Research Centre to analyse tax policy reforms, including in particular pension and demographic issues. The main feature of the EDGE-M3 model lies in its high level of disaggregation and the close connection between microeconomic and macroeconomic mechanisms which makes it a very suitable model to analyse the redistributive impact of policies. EDGE-M3 features eighty generations and seven earnings-ability types of individuals. To facilitate a realistic dynamic population structure EDGE-M3 includes Eurostat's demographic projections. In terms of calibration, the EDGE-M3 family of overlapping generations models is heavily calibrated on microeconomic data. This allows the introduction of the underlying individuals' characteristics in a macro model to the greatest extent possible. In particular, it includes the richness of the tax code by means of income tax and social insurance contribution rate functions estimated using data from the EUROMOD microsimulation model. This feature allows in particular a close connection between the macro and the micro model. In addition, the earnings profiles of the seven heterogeneous agent types are estimated using survey data. Finally, the labour supply, bequests and consumption tax calibration are all done using detailed microeconomic data, making the model highly suitable for the analysis of intra- and intergenerational analysis of tax policy.