Sefton, James; vandeVen, Justin; Weale, Martin - In: Economic Journal 118 (2008) 528, pp. 556-590
Means testing plays an important role in the UK state pension system. We use a dynamic programming model to consider the effects of a recent policy reform that reduced the marginal tax rates on private income of means tested retirement benefits from 100% to 40%. Our analysis suggests that the...