Am 26. September 2021 wurde der 20. Bundestag gewählt. Auf die Abgeordneten und die neue Bundesregierung kommen große Aufgaben zu. Demografie, Klimawandel und Digitalisierung sind drei zentrale Herausforderungen, die es in der neuen Legislaturperiode anzupacken und nachhaltig zu bewältigen...

We model the optimal reaction of a public PAYG pension system to demographic shocks. We compare the ex-ante first best and second best solution of a Ramsey planner with full commitment to the outcome under simple third best rules that mimic the pension systems observed in the real world. The...

We model the optimal reaction of a public PAYG pension system to demographic shocks. We compare the ex-ante first best and second best solution of a Ramsey planner with full commitment to the outcome under simple third best rules that mimic the pension systems observed in the real world. The...

When markets are incomplete, social security can partially insure against idiosyncratic and aggregate risks. We incorporate both risks into an analytically tractable model with two overlapping generations. We derive the equilibrium dynamics in closed form and show that joint presence of both...