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Optimal Life-Cycle Investing with Flexible Labor Supply : A Welfare Analysis of Life-Cycle Funds

Gomes, Francisco J. - 2008

-cycle (or target date) funds. We find that life-cycle funds designed to match the risk tolerance and investment horizon of … investors have small welfare costs. All other choices, including life-cycle funds which do not match investors' risk tolerance …

Persistent link: https://www.econbiz.de/10012464683

Generational Risk - Is It a Big Deal? : Simulating an 80-Period OLG Model with Aggregate Shocks

Hasanhodzic, Jasmina - 2013

The theoretical literature on generational risk assumes that this risk is large and that the government can effectively …We find that intrinsic generational risk is quite small, that government policies can produce generational risk, and … that bond markets can help share generational risk. We also show that a bond market can mitigate risk-inducing government …

Persistent link: https://www.econbiz.de/10012459483

To Roth or Not? -- That is the Question

Kotlikoff, Laurence J. - 2008

Do regular 401(k) and IRA accounts offer greater tax benefits than Roth 401(k)s and Roth IRAs? This is a tough question. Regular 401(k)s and IRAs save taxes in the short term; Roth accounts save taxes in the long term. Regular 401(k)s and IRAs are vulnerable to future income tax hikes, but may...

Persistent link: https://www.econbiz.de/10012464884

The True Cost of Social Security

Blocker, Alexander W. - 2008

countries. Yet these liabilities are rarely measured, let alone properly adjusted for their risk. This paper shows, by example …, how modern asset pricing can be used to value implicit fiscal debts taking into account their risk properties. The example …

Persistent link: https://www.econbiz.de/10012464220

Simulating the Transmission of Wealth Inequity via Bequests

Gokhale, Jagadeesh - 1999

This paper develops, calibrates, and simulates a dynamic 88-period OLG model to study the intergenerational transmission of U.S. wealth inequality via bequests. The model features marriage, realistic fertility patterns, random death, assortative mating based on skills, heterogeneous skill...

Persistent link: https://www.econbiz.de/10012471605

Laws as Assets : A Possible Solution to the Time Consistency Problem

Kotlikoff, Laurence J. - 1986

This paper presents a new solution to the time-consistency problem that appears capable of enforcing ex ante policy in a variety of settings in which other enforcement mechanisms do not work. The solution involves formulating a law, institution, or agreement that specifies the optimal ex ante...

Persistent link: https://www.econbiz.de/10012477001

Is Debt Neutral in the Life Cycle Model?

Kotlikoff, Laurence J. - 1986

This paper questions the widely accepted view that deficits have real effects in the life cycle model. Standard analyses of deficits within life cycle models treat the government as a dictatorial entity that can effect any intergenerational redistribution it desires. In contrast, this paper...

Persistent link: https://www.econbiz.de/10012477016

Health Expenditures and Precautionary Savings

Kotlikoff, Laurence J. - 1986

The precautionary motive for saving is an important issue that is receiving increasing attention. Part of the motivation for this interest stems from the post war coincidence of two trends, one a decline in the U.S. rate of saving and the other an increase in insurance of various types,...

Persistent link: https://www.econbiz.de/10012477063

Tax Incidence

Kotlikoff, Laurence J. - 1986

This paper surveys major issues in the theory of tax incidence. These include the incidence of taxes in dynamic as well … literature, rather it is offered to the reader as a pedoqogical piece that may be of use in teaching the theory of tax incidence …

Persistent link: https://www.econbiz.de/10012477212

The Efficiency Gains from Social Security Benefit - Tax Linkage

Auerbach, Alan J. - 1985

This paper examines the efficiency gains from linking marginal Social Security benefits to marginal Social Security payroll taxes. In the U.S. the current combined employer-employee OASI payroll tax rate is 10.4 percent. Recent estimates suggest that the average marginal income tax rate is...

Persistent link: https://www.econbiz.de/10012477435