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The paper presents a model where public pensions are determined by majority voting. Voters differ by age and income …. Moreover, life expectancy increases with income. Depending on the strength of the link between contributions and benefits, and … the relationship between income and life expectancy, individually optimal tax rates may increase or decrease with income …
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We analyze the effects of a permanent increase in life expectancy and of a permanent decline in the rate of population growth on intergenerational redistribution in a pay-as-you-go pension system with a constant contribution or constant replacement rate. We show that under these policies both...
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This paper uses a heterogeneous-agent overlapping-generations model to examine the fiscal and distributional consequences of introducing a means test in US Social Security. I find that a means test, that is, conditioning benefit payments on a household's earnings or assets, leads to a higher...
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We estimate the effect of additional pension income on mortality outcomes by exploring the eli- gibility criteria of a … to a 2-month delay in age at death (censored at 75). Survey evidence suggests that additional pension income improves …
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