Suchergebnisse

Both environmental quality and health care expenditure are determinants of health and life expectancy, but the support for them appears to be different according to the electors' age, with a relatively larger support for health expenditure among the elderly as it is generally effective on a shorter horizon than environmental maintenance. With population aging, the political support for health care expenditure is then self-reinforcing. We cast this issue in an overlapping generations model with endogenous longevity, where lifespan depends on health care expenditure and environmental quality. We compare the long run outcomes for health care expenditure, environmental quality, lifespan, consumption and capital accumulation of an economy where agents vote over health spending and environmental maintenance, with those chosen by a social planner who takes into account also the welfare of future generations. The role played by other factors, such as the propensity for smoothing consumption or the degree of annuity markets, is also highlighted. Empirical evidence of age-biased environmental care is provided.

Both environmental quality and health care expenditure are determinants of health and life expectancy, but the support for them appears to be different according to the electors' age, with a relatively larger support for health expenditure among the elderly as it is generally effective on a shorter horizon than environmental maintenance. With population aging, the political support for health care expenditure is then self-reinforcing. We cast this issue in an overlapping generations model with endogenous longevity, where lifespan depends on health care expenditure and environmental quality. We compare the long run outcomes for health care expenditure, environmental quality, lifespan, consumption and capital accumulation of an economy where agents vote over health spending and environmental maintenance, with those chosen by a social planner who takes into account also the welfare of future generations. The role played by other factors, such as the propensity for smoothing consumption or the degree of annuity markets, is also highlighted. Empirical evidence of age-biased environmental care is provided.

This paper provides a political-economic model to study the impact of low-skilled immigration on the host country's education system, which is characterized by sources of school funding, the average expenditure per pupil, and the type of parents who are more likely to send their children to publicly or privately funded schools. Four main effects of immigration are considered: (1) greater congestion in public schools; (2) a lower average tax base for education funding; (3) reduced wages for low-skilled workers and so more dependence by low-skilled locals on public education; (4) a greater skill premium, which makes it easier for high-skilled locals to afford private education for their children, and hence weakens their support for financing public school. It is found that when the size of low-skilled immigrants is large, the education regime tends to become more segregated with wealthier locals more likely to opt out of the public system into private schools. The fertility differential between high and low-skilled locals increases due to a quantity/quality trade-off. The theoretical predictions are consistent with empirical evidence from both the U.S. census data and the OECD Programme for International Student Assessment (2003).