?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F2950%2F&rft.title=A+Probabilistic+Voting+Model+of+Social+Security+with+Myopic+Agents&rft.creator=Wen%2C+Xue&rft.subject=HJ+Public+Finance&rft.description=This+paper+investigates+the+political+incentives+for+the+design+of+a+Pay-as-you-go+public+pension+system+in+a+probabilistic+voting+model+with+both+far-sighted+and+myopic+agents.+People+vote+for+a+payroll+tax+rate+determining+the+size+of+the+pension+system+and+a+Bismarckian+factor+representing+the+redistributive+degree+of+the+system.+The+pension+system+acts+as+a+redistribution+mechanism+and+a+commitment+device.+The+far-sighted+households+prefer+a+contributive+social+security+system.+The+myopic+households+prefer+a+more+redistributive+pension+system+but+not+necessarily+a+more+generous+pension+system+due+to+the+trade-off+between+redistribution+and+efficiency.+Office+seeking+politicians+can+target+the+far-sighted+and+myopic+groups+by+leveraging+the+generosity+and+the+redistribution+degree+of+the+social+security+system.+In+the+political+equilibrium%2C+the+payroll+tax+rate+is+U-shaped+with+respect+to+the+Bismarckian+factor%2C+which+can+partially+explain+the+political+puzzle+that+why%2C+in+practice%2C+Bismarckian+pension+systems+tend+to+be+associated+with+a+larger+pension+base.&rft.date=2015-07&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.identifier=++Wen%2C+Xue++A+Probabilistic+Voting+Model+of+Social+Security+with+Myopic+Agents.++Working+Paper+++++++(Submitted)+++&rft.relation=http%3A%2F%2Fpapers.ssrn.com%2Fsol3%2Fpapers.cfm%3Fabstract_id%3D2697985