Abstract
We re-examine a key result in the optimal UI literature that benefits should decline over time. We show that when the population is heterogeneous, Pareto-efficiency may call for multiple payment schedules, some with benefits that fall over time and some with benefits that rise over time.
Original language | English |
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Pages (from-to) | 501-517 |
Number of pages | 17 |
Journal | International Tax and Public Finance |
Volume | 17 |
Issue number | 5 |
DOIs | |
State | Published - 1 Jan 2010 |
Keywords
- Inequality
- Optimal taxation
- Re-distribution
- Unemployment insurance
ASJC Scopus subject areas
- Accounting
- Finance
- Economics and Econometrics