Based on explicit present value calculations, the paper criticizes the view that the PAYGO system wastes economic resources. In present value terms, there is nothing to be gained from a transition to funded system even though the latter offers a permanently higher rate of return. The sum of the...

A political miracle occurred when Germany was reunited, and at first glance an economic miracle has followed. Real incomes in the east have now reached the western level, and investment per capita has been much higher than in the west. However, every third deutschmark spent in the east has been...

The paper discusses the options for a reform of the German pension system using a model developed at CES for the German Council of economic advisors to the Federal Ministry of Economics and Research. It is argued that the German pay-as-you-go-system is efficient in a present value sense but will...

We provide a comprehensive analysis of income inequality and income dynamics for Germany over the last two decades. Combining personal income tax and social security data allows us - for the first time - to offer a complete picture of the distribution of annual earnings in Germany. We find that...

The upcoming demographic crisis in Germany demands fundamental reforms of the pension system. In a democracy, reforms are, however, only feasible when they are supported by the majority of the electorate. To determine whether the majority is in favor of reforms of the pension system, we...

Zwei unabhängige Wirtschaftshistoriker haben anlässlich seines 75-jährigen Bestehens die Geschichte des RWI – Leibniz-Institut für Wirtschaftsforschung aufgearbeitet. Sie entdeckten viele Konstanten: Schon in der Nachkriegszeit forschte das RWI in einem theoriegeprägten Umfeld vor allem...

Ein in allen Wirtschaftsbereichen gültiger CO2-Preis wäre die effizienteste Maßnahme für einen besseren und sozial ausgewogenen Klimaschutz. Die Politik muss mehr für den Klimaschutz tun – diese Erkenntnis hat sich inzwischen auf breiter Ebene durchgesetzt. Über die verschiedenen...