?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F1646%2F&rft.title=A+Probabilistic+Voting+Model+of+Social+Security%3A+The+Role+of+Myopic+Agents&rft.creator=Wen%2C+Xue&rft.subject=HA+Statistics&rft.subject=HB+Economic+Theory&rft.subject=HM+Sociology&rft.description=This+paper+investigates+the+political+incentives+for+the+design+of+social+security+policy+in+competitive+democracies+with+both+far-sighted+and+myopic+households.+The+social+security+scheme+depends+on+both+a+payroll+tax+rate+which+determines+the+size+of+the+pension+and+a+Bismarckian+factor+that+represents+its+redistributive+component.+By+considering+a+probabilistic+voting+setting+of+electoral+competition%2C+we+analyze+the+political+game+between+office-seeking+politicians+and+self-interested+citizens.%0D%0APoliticians+can+win+the+election+by+targeting+the+voters+in+each+group+by+trading+off+the+generosity+and+the+redistribution+degree+of+the+public+pension+system.+In+the%0D%0Apolitical+equilibrium%2C+the+contribution+rate+is+U-shaped+with+respect+to+the+Bismarckian+factor.+Moreover%2C+the+equilibrium+Bismarckian+factor+unambiguously+decreases+with+the+proportion+of+myopic+agents%2C+whereas+the+equilibrium+payroll+tax+rate+curve+is+U-shaped+with+respect+to+the+proportion+of+myopic+agents.&rft.date=2012-10&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.identifier=http%3A%2F%2Feprints.imtlucca.it%2F1646%2F1%2FWen_WP_Oct_2012.pdf&rft.identifier=++Wen%2C+Xue++A+Probabilistic+Voting+Model+of+Social+Security%3A+The+Role+of+Myopic+Agents.++Working+Paper++%23+%2F2012++++++++(Unpublished)+++