Forced Saving, Redistribution and Nonlinear Social Security Schemes
This paper studies the design of a nonlinear social security scheme in a society where individuals differ in two respects: productivity and degree of myopia. Myopic individuals may not save quot;enoughquot; for their retirement because their quot;myopic selfquot; emerges when labor supply and savings decisions are made. The social welfare function is paternalistic: the rate of time preference of the far-sighted (which corresponds to the quot;truequot; preferences of the myopics) is used for both types. We show that the paternalistic solution does not necessarily imply forced savings for the myopics. This is because paternalistic considerations are mitigated or even outweighed by incentive effects. Our numerical results suggest that as the number of myopic individuals increases, there is less redistribution and more forced saving. Furthermore, as the number of myopic increases, the desirability of social security (measured by the difference between social welfare with and without social security) increases
Year of publication: |
[2008]
|
---|---|
Authors: | Cremer, Helmuth |
Other Persons: | De Donder, Philippe (contributor) ; Maldonado, Dario (contributor) ; Pestieau, Pierre (contributor) |
Publisher: |
[2008]: [S.l.] : SSRN |
Saved in:
freely available
Extent: | 1 Online-Ressource (24 p) |
---|---|
Series: | CESifo Working Paper Series ; No. 2325 |
Type of publication: | Book / Working Paper |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 2008 erstellt |
Other identifiers: | 10.2139/ssrn.1145182 [DOI] |
Classification: | D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012771645
Saved in favorites
Similar items by subject
-
Optimal dynamic risk sharing when enforcement is a decision variable
Koeppl, Thorsten V., (2003)
-
Perpetual youth and endogenous labour supply
Ascari, Guido, (2004)
-
Consumption and initial mortgage conditions
Masier, Giacomo, (2011)
- More ...
Similar items by person