a re evaluation of the relation between wages and unemployment in the united kingdom this paper examines the long run or equilibrium relationship between wages prices and the unemployment rate in the united kingdom using annual data covering the period 1860 1999 using johansen s maximum likelihood method of testing for cointegration two long run relations are found in a small system of four variables the first relation depicts the co movement of the level of real wages adjusted for productivity together with the unemployment rate and the rate of inflation the second relation shows the co movement between the rate of inflation and deviations of productivity from its trend growth

transactions costs and the optimal quantity of money this paper models a physical environment in which agents rationally choose to hold both fiat money and higher return capital this occurs because information barriers permit bona fide capital to be distinguished from bogus titles to capital and bogus ious only at a cost one implication is that the holding period for capital is greater than that for fiat money the information barriers also limit the government interventions that are feasible and in so doing overturn standard notions concerning the optimal quantity of money in this paper i model a physical environment in which agents rationally choose to hold both fiat money and a productive asset with a greater rate of return moreover the fiat money in this model circulates with a greater velocity than does the productive asset in this model agents live 3 period lives and are members of generations that overlap they receive an endowment of the model s single consumption good only in the first period of life and must therefore hold assets to provide for consumption in other periods of life when the consumption good is stored it only yields a return 2 periods after it was stored as a result storage can be used to provide for consumption in the third period of life the crucial assumptions of the model are restrictions on the infor

dynamic programming model estimates of social security disability insurance application timing this paper develops a dynamic programming model of the social security disability insurance ssdi application timing decision we estimate the time to application from the point at which a health condition first begins to affect the kind or amount of work that a currently employed person can do we use health and retirement study hrs and restricted access social security earnings data for estimation our results show that the type of work limiting health condition presence of employer accommodation and the relative value of income in the application state to income in the work state significantly affect the timing of ssdi application copyright 2004 john wiley sons ltd

choice under uncertainty a model of applications for the social security disability insurance program abstract not all people with health problems are disabled some individuals with severe physical or mental impairments such as blindness or limb amputation continue to hold jobs and generally function satisfactorily they constitute however a group of potentially disabled individuals who might apply and qualify for disability insurance or other disability related benifits if they were to lose their jobs or to decide that employment offered an inadequate financial or non pecuniary reward thus disability or a health related inability to work is more than a medical problem but involves motivational and attitudinal factors we specify a model of the application process which we model as choice under uncertainty about approval of an application for disability insurance we specify the possible outcomes to the choice process of an individual in which the probability of acceptance for disability insurance is a key consideration we then estimate a joint model of labor supply and application to the disability insurance program based on the 1972 survey we then compare our results to the observed time series applications process since 1976 lastly we estimate the sensitivity of the application process to the probability of acceptance and the level of benifits

job exit behavior of older men a dynamic programming model of job exit behavior and retirement is constructed and estimated using the method of simulated moments the model and estimation method allow for both unobserved individual effects and unobserved job specific match effects the model is estimated using two different assumptions about individual discount factors first a static model with the discount factor equal to zero is estimated then a dynamic model with the discount factor equal to 95 is estimated in both models it is found that bad health age and lack of education increase the probability of retirement the dynamic model performs better than the static model and has different implications for retirement behavior the job specific effects are an important source of unobserved heterogeneity copyright 1991 by the econometric society

is money net wealth this paper develops a simple monetary model a hybrid of the sidrauski and overlapping generation frameworks in which new dynasties of infinitely lived agents continuously enter the economy it is shown that the long run nonsuperneutrality of money in life cycle models is a modality of the violation of the ricardian debt neutrality proposition the very same intergenerational redistribution effects which on the fiscal side are the source of debt nonneutrality are at work on the monetary side to create monetary wealth effects and make money nonsuperneutral in the long run copyright 1991 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

fiat money as a medium of exchange this paper presents a completely explicit exchange environment in which agents wishing to exchange one type of good for another choose to trade for fiat money which is then traded for the desired goods this exchange pattern is chosen over barter because specified properties of fiat money make this pattern less expensive than the search for a double coincidence of wants although the transaction services of money affect agents utility the model s welfare implications are those of the basic overlapping generations models not those of models with money balances in the utility function copyright 1989 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

older people s participation in extra cost disability benefits the targeting of an uk extra cost disability benefit for older people attendance allowance is analyzed using longitudinal data from the british household panel survey first a binary model of benefit participation is used to investigate whether receipt is responsive to the onset of disability second matching estimators are used to evaluate the consequences of missed participation on later financial wellbeing results indicate that participation is highly responsive to the onset of disability although the chance of delays in receipt emerges personal characteristics unrelated to eligibility also appear to influence benefit receipt translating into sizeable differences in the amount of cash support received the comparison of recipients with observationally equivalent non recipients confirms that timely participation reduces disabled older people s financial strain

panel estimates of the determinants of british regional male incapacity benefits rolls 1998 2006 this article explores the determinants of the proportion of the working age male population claiming incapacity benefits ib across the 11 british government office regions for the period 1998 to 2006 three different approaches are adopted to modelling register dynamics first treating ib stocks as if they were trend stationary albeit with persistence and estimating reduced form models for their logs second treating ib stocks as if they were nonstationary and examining their long run determinants plus short run equilibrium reversion properties third focusing on the determinants of gross inflows and outflows that together drive ib stocks given the nature of the data no approach is ideal yet the models provide reasonably robust evidence that labour market changes specifically falling unemployment rates and rising real earnings have contributed to falling male ib stocks over the period

the trade off interpretation of phillips s dynamic stabilization exercise this paper which examines phillips s famous curve is based on phillips s private papers and the london school of economics methodology measurement and testing seminar records sources previously thought to be lost these sources plus phillips s theoretical work suggest that the equilibrium menu of choice is a misinterpretation of phillips s dynamic stabilization exercise phillips had a clearly articulated role for inflationary expectations in his model and had no toleration for the notion that ongoing inflation could purchase sustainable reductions in the rate of unemployment evidence is cited which indicates that milton friedman was profoundly influenced by phillips s analysis of inflationary expectations

why have uk disability benefit rolls grown so much abstract over the last 30 years many countries including the uk have seen a dramatic rise in the share of the working age population receiving sickness and disability benefits hereafter disability benefits this is despite health levels that are generally thought to be slowly improving this paper describes the time path of uk disability benefit rolls and explores the existing uk literature together with literature from the usa in search of potential explanations for it since the early 1990s despite a number of detailed descriptive studies surprisingly little attention has been paid to quantifying the importance of the different factors believed to be driving the uk benefit roll growth this is all the more surprising given the continued growth and the level of policy attention recently and currently devoted to disability benefits in the uk

explaining applications to the u s disability system a semiparametric approach this study investigates the determinants of applications for u s disability benefits between 1986 and 1993 using a semiparametric discrete factor procedure separately for men and women approximating a dynamic optimization model the estimation accounts for a variety of potential biases that were unaddressed in prior studies our results indicate different responses of men and women to variations in policy measures past labor earnings and fringe benefits as well as benefit eligibility and benefit amounts clearly affect application behavior

disability transfers and the work decision of older men the potential causal relationship between the availability and generosity of disability transfers and the nonparticipation rates of older men is often asserted and much studied parsons 1980 haveman and wolfe 1984 leonard 1986 however estimates of the magnitude of this linkage vary widely the growth in transfer availability and generosity has been credited with from 30 to 100 percent of the significant post 1960 fall in older male participation rates the disparity in these research results stems primarily from 1 alternative sources of data that differentially constrain estimation of relevant expected wage and transfer incomes 2 specifications that are unable to distinguish income transfer from labor market effects and 3 reliance on measures of health status that are endogenous to the work leisure decision this study seeks to narrow the range of estimates by addressing each of these issues our utility maximization model of work status choice assumes that workers who differ in health status choose between the mutually exclusive options of working at the wage offered for their characteristics and accepting public or private disability transfers because the income flows in the two options are censored they are estimated using switching regression techniques as expectations conditional on exogenous individual characteristics hence accounting for the potentially endogenous process that separates wage earners from transfer recipients the marginal utilities of income from the two sources are allowed to differ because of stigma effects in the estimation we adjust the choice based nature of our sample employ longitudinal earnings data to measure expected changes in as distinct from the expected level of income in the two options and use a separately estimated latent health status measure largely purged of its endogeneity with the participation decision

unemployment in britain male unemployment in britain has risen from around 2 per cent in the 1950s to around 17 per cent in 1985 see figure 1 the figures are for male unemployment because there is no consistent series for women 1 even more remarkably unemployment has fallen in only three years out of the last twenty 1973 1978 and 1979 to account for this we need a model that explains both changes in the natural or non accelerating inflation rate of unemployment nairu and deviations from it we use a three equation supply side model centred on the labour market this has two main features the first concerns the determination of employment in the short run the labour demand function that we use cuts through the fruitless debate now raging especially in europe as to whether current unemployment is classical or keynesian according to the classical view employment is too high because real wages are too high according to the keynesian view real wages are not binding and unemployment is high because the product market does not clear with prices too high relative to nominal demand the whole debate is set in the framework of perfect competition yet in perfect competition prices are set by impersonal forces and it is not clear what could possibly stop prices clearing the market it is much more reasonable to think of prices as being set by imperfectly competitive firms existing prices being the best they can think of given the demand they face in this context firms demand for labour will depend on both the real product wage and the level of real aggregate demand this is the demand function we estimate and it conforms both to common sense and to the data however this does not imply that employment can be made to grow without limit by pumping up real demand for in the medium term when price surprises are eliminated our model determines three variables employment real wages and real demand on the basis of three equations an employment equation a price equation and a wage equation thus in the medium term there is a natural level of employment and corresponding to this a natural level of real aggregate demand the second key feature of our model concerns the medium term determination of unemployment in the medium term the planned mark up of wages over prices in wage settlements must be consistent with the mark up of prices over wage costs in employers pricing behaviour for if wage setters try to set real product wages higher than is consistent with employers pricing behaviour this generates ever increasing inflation thus the key to understanding unemployment in the medium term is the behaviour of wage setters if events occur that push them towards too high real wages then unemployment has to rise to offset these influences we shall call these influences wage pressure variables or push factors and they are clearly crucial in understanding unemployment the variables here include the social security system employment protection

unemployment a survey this paper presents a survey of the economics of unemployment it covers competitive and imperfect competition models the role of different methods of wage determination and explanation of postwar unemployment patterns in the oecd countries copyright 1990 by royal economic society

the retirement health nexus a new measure of an old puzzle traditional empirical models of retirement which use a self assessed health measure have often found that the wage rate has a surprisingly small effect on retirement using both a self reported health measure and one not based on self report subsequent mortality experience in a more general reduced form joint demand framework we test the importance of the interaction effects of health and retirement our findings are consistent with a joint determination of health and retirement the wage elasticity using either health measure is about equal to that found in a single equation model when a mortality measure is used but all three elasticities are five times greater than one found using self reported health in a traditional single equation model

the economic implications of public disability insurance in the united states a review of previous analyses of labor supply effects of social security disability insurance di concludes that estimates of labor supply effects and net social costs are upward biased because they ignore interactions between di and other insurances a model of optimal insurance postinjury accommodations and labor supply shows that reduction in labor supply and increase in consumption when disabled do not necessarily imply moral hazard optimal postinjury accommodations vary inversely with firm size the americans with disabilities act will reduce wages and labor supply of healthy workers particularly in small firms effects on labor supply of the disabled are ambiguous

resolving differences over the optimal quantity of money optimal steady state monetary policy in models of infinitely lived agents calls for a deflation of the fiat money stock at a rate that equates the rates of return of fiat money and capital this prescription for the optimal quantity of money holds whether the demand for money springs from placing money in the utility function friedman 1969 a cash in advance constraint grandmont and younes 1973 or spatial separation townsend 1980 in contrast monetary models of overlapping generations have counseled the golden rule optimality of a fixed stock of fiat money 1 this model has often been criticized for its lack of a transactions role for money that would distinguish itself from other assets 2 the seeming difference in this model s implications concerning the optimal quantity of money thus raises an obvious question 3 does the overlapping generations model obtain different welfare implications because it assumes a finite lifespan or because it lacks a special transactions role for money recent work has reexamined the optimal quantity of money in overlappinggenerations models featuring transactions roles for money abel 1987 who takes the broadest and clearest look finds that the golden rule optimal monetary policy

measuring the effect of disability on labor force participation this paper estimates the effect of disability on labor force participation by using symptoms or diseases as instruments in a simultaneous equations model of endogenous reported disability and labor force participation the results show that each measure of disability explains a significant amount of variation in labor force participation though the two are not perfect substitutes there is only weak evidence of endogeneity of the disability variables for cases where there is evidence of endogeneity the bias it causes has the opposite effect of that hypothesized in the literatute i e stress causes health to deteriorate with labor force participation furthermore it has only insignificant effects on the coefficients for other variables

the health and earnings of rejected disability insurance applicants applicants for social security disability benefits who fail to pass the medical screening form a natural control group for beneficiaries data drawn from the 1972 and 1978 surveys of the disabled done for the social security administration show that fewer than 50 percent of rejected male applicants work typical earnings of those that do are less than 59 percent of median earnings for other men their age these data cast doubt on recent econometric work that suggests that the disincentive effects of the social security disability program have been substantial copyright 1989 by american economic association

monetary policy banking crises and the friedman rule banking crises are frequent events gerard caprio and daniela klingebiel 1997 catalog over 80 banking crises during the last 25 years interestingly some banking crises are associated with no output losses whatsoever while others involve massive recessions finally it is known that the probability of a banking crisis rises as the rate of inflation rises see asli demirguc kunt and enrica detragiache 1997 john boyd et al 2001a b while received wisdom exists about the conduct of monetary policy while a crisis is underway there is no formal treatment of how the conduct of monetary policy during normal times affects the potential for banking crises to occur to fill that gap i consider economies where spatial separation and limited communication create a transactions role for money and random shocks to agents liquidity preferences create a role for banks in addition banks confront randomness in withdrawal demand when withdrawal demand is sufficiently high banks exhaust their cash reserves there are good reasons to associate this with a banking panic the output lost during a banking panic depends on how great withdrawal demand is some banking crises generate no output losses while others generate large reductions in resource availability in addition the conduct of monetary policy during normal times affects the probability of a banking crisis the higher the nominal interest rate the inflation rate the higher is the probability of a panic driving the nominal interest rate to zero following the friedman rule eliminates bank panics this constitutes a new rationale for the friedman rule nonetheless conventional methods of implementing the friedman rule never produce an optimal resource allocation in particular low nominal interest rates induce banks to hold large cash reserves thereby forgoing socially more productive investments in effect the friedman rule induces banks to become narrow banks voluntarily the banking system is very safe but it undertakes a suboptimal level of investment less conventional methods for implementing the friedman rule such as allowing unrestricted access to the discount window at a zero nominal interest rate lead either to the nonexistence of equilibrium or to massive indeterminacies none of the equilibria will be consistent with full optimality

disability insurance rejection rates and the labor supply of older workers abstract we investigate the effects of trying to mitigate moral hazard in the disability insurance di program by raising the stringency of the screening process for applicants we do so by studying a dramatic increase in rejection rates for the di program in the late 1970s which varied substantially across the us states we find that each 10 rise in denial rates led to a statistically significant 2 8 fall in labor force non participation among 45 64 year old males we also find that the denial rate increases effectively targeted their incentive effects to more able individuals according to an anthropometric measure of disability

the role of money in two alternative models when is the friedman rule optimal and why abstract in models of money with an infinitely lived representative agent ilra models the optimal monetary policy is almost always the friedman rule in overlapping generations og models by contrast the friedman rule may not be optimal in this paper we use this difference in monetary policy prescriptions to help us identify and study the key difference between these two models as models of money we study the welfare properties of monetary policy in a simple og model under two very different money demand specifications and two alternative assumptions about the generational timing of taxes for money retirement we conclude that the key difference between ilra and og monetary models is that in the latter the standard method for constructing a monetary regime causes transactions involving money to become intergenerational transfers under alternative government fiscal monetary regimes that offset these intergenerational transfers the friedman rule is always optimal

self screening in targeted public transfer programs the self screening properties of initial eligibility determination a mechanism often under the control of the administrators of targeted transfer programs are derived and the use of this mechanism in the social security disability insurance system is explored empirically an increase in the rigor of initial eligibility screening may discourage potential applicants because they are unaware of appeal prospects and because the eligibility decision delay is lengthened as denied applicants are forced to appeal their claims in the disability program a 10 percent increase in the initial denial rate induces a 4 percent decrease in applications self selection is nonperverse

contrasting models of the effect of inflation on growth the paper formulates a nesting model for studying the theoretical literature on inflation and endogenous growth it analyses different classes of endogenous growth models with different usage of physical and human capital with different exchange technologies first the paper shows that a broad array of models can all generate significant negative effects of inflation on growth second it shows that these models can be differentiated primarily by the fact whether there is a tobin type effect of inflation and also whether the inflation growth effect becomes weaker as the inflation rate rises a non linearity or stays essentially constant over the range of inflation rates the paper compares these features of the models to empirical evidence as a way to summarize the efficacy of the models

disability transfers self reported health and the labor force attachment of older men evidence from the historical record we use trends in self reported disability to gauge the impact of the growth of disability transfer programs on the labor force attachment of older working aged men our tabulations suggest that between 1949 and 1987 about half of the 4 9 percentage point drop in the labor force participation of men aged 45 54 and between one quarter and one third of the 19 9 point drop among men aged 55 64 represented a movement of men out of the labor force and onto the rolls of transfer programs targeted at the disabled since the expansion of transfer programs represents only one of the forces behind this movement these figures represent upper bounds on the impact of such programs on work force attachment

inflation wealth and interest rates in an intertemporal optimizing model abstract this paper analyzes the relationship between the growth of the money supply and capital accumulation in a monetary optimizing model under certain conditions we show that a large intertemporal elasticity of substitution makes the nominal rates of interest undershoot its long term value that a low elasticity gives rise to overshooting while a unitary elasticity is shown to make the nominal rate of interest a constant these considerations plus explicit attention paid to the income and substitution effects induced by the changes in the nominal rates of interest provide us with an understanding of the correlation between growth of money and capital accumulation

inflation investment and growth a money and banking approach output growth investment and the real interest rate in long run evidence tend to be negatively affected by inflation theoretically inflation acts as a human capital tax that decreases output growth and the real interest rate but increases the investment rate opposing evidence this paper resolves this puzzle by requiring exchange for investment as well as consumption inflation then decreases the investment rate and still decreases both output growth and real interest up to some moderately high rate of inflation above which increasingly low investment finally causes capital to fall relative to labour and the real interest rate to rise

the natural rate of unemployment reflections on 25 years of the hypothesis 1 introduction rod cross part i the theoretical framework 2 the origins and further development of the natural rate of unemployment edmund phelps 3 the natural rate as new classical macroeconomics james tobin 4 theoretical reflections on the natural rate of unemployment frank hahn 5 of coconuts decomposition and a jackass the genealogy of the natural rate huw dixon part ii adjustment ranges of equilibria and hysteresis 6 the economics of adjustment andrew caplin and john leahy 7 hysteresis and memory in the labour market g c archibald 8 models of the range of equilibria ian mcdonald 9 hysteresis revisited a methodological approach bruno amable jerome henry frederic lordon and richard topol 10 is the natural rate hypothesis consistent with hysteresis rod cross part iii empirical tests and macro models 11 the natural rate hypothesis and its testable implications hashem pesaran and ron smith 12 non linear dependence in unemployment output and inflation empirical evidence for the uk david peel and alan speight 13 prices wages and unemployment in the us economy a traditional model and tests of some alternatives albert ando and flint brayton 14 the natural rate in empirical macroeconomic models simon wren lewis part iv political economy 15 is the natural rate of unemployment a useful concept for europe maria demertzis and andrew hughes hallett 16 the natural rate of unemployment a fundamentalist keynesian view meghnad desai 17 politics and the natural rate hypothesis a historical perspective bernard corry

the liquidity trap the real balance effect and the friedman rule this paper studies the behavior of the economy and the efficacy of monetary policy under zero nominal interest rates using a model with population growth that nests as a special case a more conventional specification in which there is a single infinitely lived representative agent the paper shows that with a growing population monetary policy has distributional effects that give rise to a real balance effect thereby eliminating the liquidity trap these same distributional effects however can also work to make many agents much worse off under zero nominal interest rates than they are when the nominal interest rate is positive

a structural retirement model the life cycle model analyzed here constrains most work on the main job to be full time partial retirement entails a wage reduction and frequently a job change maximum likelihood estimates of utility function parameters are designed to incorporate information on the age of leaving full time work and the age of full retirement the model closely tracks retirement behavior including peaks in retirement activity at 62 and 65 the paper explores the relation of these peaks to nonlinearities in the budget constraint created by various retirement programs policy analyses based on this and on earlier models with simpler structures are compared the retirement choice is one of the more prominent manifestations of life cycle behavior the decision is the result of an interplay between an individual s preferences and a set of incentives which change in complicated ways as the individual progresses through his or her late 50 s and 60 s the purpose of this study is to formulate and estimate a structural model which incorporates in a fundamental way this interplay between lifetime preferences and incentives and to illustrate how such a model may be used to investigate retirement behavior a structural model of this type is essential for analyzing potential policy changes which can be expected to affect incentives in varying ways over a number of years in the life cycle the current study incorporates two structural features which have frequently been omitted from previous studies first the model requires that an individual who wishes to reduce work effort below full time must accept a reduced hourly wage rate in order to do so this reflects empirical evidence from micro data sets which indicates that around one third of older individuals engage in part time work at one time or another and that regardless of whether or not these older workers change jobs to obtain part time work they usually take wage cuts as compared to their previous full time work 2 the fact that an individual is willing to accept a lower wage rate in return for the opportunity to work fewer than full time hours contains important information about the preferences of the

imperfect tagging in social insurance programs abstract this paper derives the optimal benefit structure of an earnings insurance program when a characteristic or tag imperfectly identifies those unable to work with a two sided classification error the optimal program is a dual work incentive system with a work non work consumption differential maintained for the tagged and untagged just sufficient to induce the able in each group to work and with more generous payments to tagged than to untagged individuals of the same work status it includes premiums to program eligible individuals who work a price missing in the u s social security disability system and in earlier attempts to characterize the optimal disability program

the behavioral dynamics of youth smoking individual smoking behavior persists over time but the extent to which we can attribute this repeated behavior to past use or individual heterogeneity is not well understood to address this empirical question we develop a dynamic model of smoking decisions which explicitly accounts for the impact of endogenous previous smoking behavior and allows for observed and unobserved individual heterogeneity the model is estimated using longitudinal data on a representative sample of teens from all 50 united states from 1988 to 1992 we have two main findings first we show that there is a significant causal role for past cigarette consumption even after controlling extensively for observed and unobserved heterogeneity second we find measurable evidence of different sensitivities to cigarette price depending on past use these two findings suggest that a cigarette price increase will have a larger aggregate effect in the long run than in the short run as more individuals accumulate in the price sensitive non smoking group

how social security and medicare affect retirement behavior in a world of incomplete markets this paper provides an empirical analysis of how the u s social security and medicare insurance system affect the labor supply of older males in the presence of incomplete markets for loans annuities and health insurance we estimate a detailed dynamic programming dp model of the joint labor supply and social security acceptance decision focusing on a sample of males in the low to middle income brackets whose only pension is social security the dp model delivers a rich set of predictions about the dynamics of retirement behavior and comparisons of actual vs predicted behavior show that the dp model is able to account for wide variety of phenomena observed in the data including the pronounced peaks in the distribution of retirement ages at 62 and 65 the ages of early and normal eligibility for social security benefits respectively we identify a significant fraction of health insurance constrained individuals who have no form of retiree health insurance other than medicare and who can only obtain fairly priced private health insurance via their employer s group health plan the combination of significant individual risk aversion and a long tailed pareto distribution of health care expenditures implies that there is a significant security value for these individuals to remain employed until they are eligible for medicare coverage at age 65 overall our model suggests that a number of heretofore puzzling aspects of retirement behavior can be viewed as artifacts of particular details of the social security rules whose incentive effects are especially strong for lower income individuals and those who do not have access to fairly priced loans annuities and health insurance

lump sum taxation and the superneutrality and optimum quantity of money in life cycle growth models abstract the question of superneutrality and the optimum quantity of money is addressed in a model where money services enter the utility function and where individuals have finite lives it is demonstrated that the existing result in the literature regarding a positive relationship between money creation and the steady state capital intensity and welfare is not due to monetary policy per se on the contrary this is shown to arise because of the intergenerational wealth effects embedded in the manner in which money is created assuming that preferences are separable between consumption goods and real balances and that the consumption goods are normal it is proved that i money is superneutral and ii any other money supply rule is pareto inferior to the chicago rule provided that the government also embarks on a policy of wealth redistribution across generations through the imposition of appropriate lump sum taxes and transfers