(2) A Right-wing criterion does not always imply no redistribution. .
We observe that in the two wage distributions the elected legal retirement age under the Downsian criterion is higher than that under the Right-wing criterion.
It is easy to check that if the government could implement both parameters (R, α), the optimal redistribution degree would be no redistribution for the Right-wing criterion.
Additionally, it should be noted that the intra-generational degree of redistribution implemented with the Right-wing criterion would be α = 1 − /τ ϑ, where ϕ depends positively on the population growth rate, n.
Therefore, when the indirect effect outweighs the direct effect, even a government with a Right-wing criterion would implement a positive level of intra-generational redistribution in the pension system in order to encourage people to work longer.
If individuals were allowed to retire early (at some percentage of the legal retirement age), the level of intra-generational redistribution implemented under a Right-wing criterion would be even higher.
The second point of the proposition states that under a Right-wing criterion, the government could choose a positive level of intra-generational redistribution in the pension system in order to maximize the utility of the most productive individuals.14 This result can be explained by the direct and indirect effects in the utility function which pull in opposite directions.
The first and second columns give us the intra-generational degree of redistribution, α, the elected legal retirement age, R e, and the optimal ages for the poorest and the richest individuals, R*(w−) and R*(w+), under a Downsian criterion and under a Right-wing criterion, respectively.
Hinting at why Fletcher and Adams left the GOP, Schwarzenegger writes that in the "current climate, the extreme right wing of the party is targeting anyone who doesn't meet its strict criteria".
