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Expected net present value, expected net future value, and the Ramsey rule

Gollier, Christian - 2009

Weitzman (1998) showed that when future interest rates are uncertain, using the expected net present value implies a term structure of discount rates that is decreasing to the smallest possible interest rate. On the contrary, using the expected net future value criterion implies an increasing...

Persistent link: https://www.econbiz.de/10010274006

One-sided private provision of public goods with implicit Lindahl pricing

Meier, Volker - 2010

We consider a sequential game in which one player produces a public good and the other player can influence this decision by making an unconditional transfer. An efficient allocation requires the Lindahl property: the sum of the two (implicit) individual prices has to be equal to the resource...

Persistent link: https://www.econbiz.de/10010274724

The standard deviation of life-length, retirement incentives, and optimal pension design

Aronsson, Thomas; Blomquist, Sören - 2010

In this paper, we consider how the retirement age as well as a tax financed pension system ought to respond to a change in the standard deviation of the length of life. In a first best framework, where a benevolent government exercises perfect control over the individuals' labor supply and...

Persistent link: https://www.econbiz.de/10010274764

Public investment as commitment

Gerlagh, Reyer; Liski, Matti - 2011

Should public assets such as infrastructure, education, and the environment earn the same return as private investments? The long-term nature of public investments provides commitment to current preferences, which justifies lower than private returns for time-inconsistent decision markers. An...

Persistent link: https://www.econbiz.de/10010274884

Why uncertainty matters: Discounting under intertemporal risk aversion and ambiguity

Traeger, Christian - 2012

Uncertainty has an almost negligible impact on project value in the economic standard model. I show that a comprehensive evaluation of uncertainty and uncertainty attitude changes this picture fundamentally. The analysis relies on the discount rate, which is the crucial determinant in balancing...

Persistent link: https://www.econbiz.de/10010280817

Democracy, inequality and the environment when citizens can mitigate privately or act collectively

Bernard, Sophie; Hotte, Louis; Winer, Stanley L. - 2010

either mitigate the health consequences of domestic pollution privately or reduce pollution collectively through public … ordinary citizens. The recognition that the health consequences of pollution can be dealt with privately at a cost adds an … private mitigation is feasible, inequality of incomes leads to an unequal distribution of the health burden of pollution (in …

Persistent link: https://www.econbiz.de/10010274898

Overconfidence and Gender Equality in the Labor Market

Bastani, Spencer; Giebe, Thomas; Gürtler, Oliver - 2023

Gender differences in overconfidence have been extensively documented in the empirical literature, but the implications for labor market outcomes are not well understood. In this paper, we analyze how men's relatively higher overconfidence, combined with competitive job incentives, affects...

Persistent link: https://www.econbiz.de/10014290249

Social security and risk sharing

Gottardi, Piero; Kubler, Felix - 2006

In this paper we identify conditions under which the introduction of a pay-as-you-go social security system is ex-ante Pareto-improving in a stochastic overlapping generations economy with capital accumulation and land. We argue that these conditions are consistent with many calibrations of the...

Persistent link: https://www.econbiz.de/10010263901

Intergenerational risk sharing by means of pay-as-you-go programs: an investigation of alternative mechanisms

Thøgersen, Øystein - 2006

A pay-as-you-go (paygo) pension program may provide intergenerational pooling of risks to individuals' labor and capital income over the life cycle. By means of a model that provides illuminating closed form solutions, we demonstrate that the magnitude of the optimal paygo program and the nature...

Persistent link: https://www.econbiz.de/10010263946

Retirement, pensions, and ageing

Heijdra, Ben J.; Romp, Ward E. - 2007

We study the effects of demographic shocks and changes in the pension system on the macroeconomic performance of an advanced small open economy. An overlapping-generations model is constructed which includes a realistic description of the mortality process. Individual agents choose their optimal...

Persistent link: https://www.econbiz.de/10010264112