Download e-book for iPad: Social Security and Economic Globalization by Paul J.J. Welfens

By Paul J.J. Welfens

ISBN-10: 3642408796

ISBN-13: 9783642408793

ISBN-10: 364240880X

ISBN-13: 9783642408809

Economic globalization is a posh phenomenon the place the hyperlinks among social safeguard expenses and globalization usually are not good understood thus far. This learn summarizes new key findings and highlights new theoretical insights within the box of social protection structures, exertions criteria, taxation and monetary globalization. additionally, new techniques at the hyperlinks among social safeguard platforms and migration in addition to among loose alternate parts and social industry economic system improvement are offered. The e-book analyzes the position of a altering age dependency utilizing a Branson version and it derives implications for the inventory industry cost index, the alternate cost and the rate of interest. financial globalization should be politically controlled and during the Transatlantic Banking hindrance and the Euro concern the necessity to extra conscientiously draw the principles of the sport for monetary globalization has been highlighted. volatile monetary markets have a wide power to undermine social industry economies and social safeguard platforms. The emerging source of revenue inequalities inside of international locations elevate extra coverage demanding situations for Europe than for the US.

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Ageing democracies may therefore be expected to have a higher long-term inflation rate than before. A country which has a policy parameter ρ ¼ 0 will, however, have a different result. Only by coincidence will the budget constraint schedule and the vertical long-run Phillips curve overlap. To the extent that the equilibrium inflation in societies with a higher dependency ratio is increasing, this will cause adjustment conflicts in partner countries. Moreover, in a system of fixed exchange rates, the ageing country against whose currency the other countries are pegging the exchange rate will generate tensions to the extent that the ageing process in partner countries is not as fast as in the anchor country (and to the extent that stability preferences differ).

The reality of corporate taxation is such that US companies often realize a very low effective corporate tax rate. Bretschger and Hettich (2002) complete the model by stating (with r standing for the rate of return on capital, A is knowledge) the government budget constraint as follows: G ¼ τr(A,K) K which implies dG ¼ r(dτ K + τdK outflow + τdK inflow). The latter term reflects the fact that a rise of knowledge will lead to capital inflows and hence the authors control for economic growth in the empirical implementation of the model.

In an augmented model which includes the stock market, one can consider the effects of a change of the dependency ratio one, i, and the stock market price index P0 . If one considers a closed economy with bonds, stocks, and money, one can consider a simple portfolio model which determines the stock market price index P0 and the interest rate. Looking at a closed economy model makes sense if we are interested in understanding the effect of a rising global dependency ratio on the world economy – the world economy is the only closed economy that exists in reality; after 2050 the world economy is facing global ageing.

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Social Security and Economic Globalization by Paul J.J. Welfens


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