We apply a modern dynamic stochastic general equilibrium
model with heterogeneous agents for the investigation. The model
economy consists of a large number of individuals who own/supply
labor and capital, competitive firms that hire labor and capital to
produce final goods, and a government that collects tax revenue
and provides social insurance programs. A more detailed description
of the theocratical model is provided in the appendix (please
see the working paper version with technical details on