The Welfare Effects of Pay-As-You-Go Retirement Programs: The Role of Tax and Benefit Timing.
It is well known that pay-as-you-go retirement programs reduce steady-state welfare and the capital stock in dynamically efficient overlapping generation (OLG) economies. The common two-period OLG model obscures, however, the relationship between the magnitude of these effects and the ages at which...
| Published in: | Contemporary Economic Policy Vol. 25; no. 2; pp. 282 - 293 |
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| Format: | Article |
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Wiley-Blackwell
April 2007
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| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=510606829&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 510606829 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 10743529 CEY jtl: Contemporary Economic Policy issn: 10743529 maglogo: N pubinfo: dt: April 2007 vid: 25 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 510606829 10.1111/j.1465-7287.2007.00038.x ppf: 282 ppct: 11 formats: fmt: – @attributes: type: T – @attributes: type: P size: 817KB tig: atl: The Welfare Effects of Pay-As-You-Go Retirement Programs: The Role of Tax and Benefit Timing. aug: au: Viard, Alan D. su: Overlapping generations model (Economics) Welfare economics Retirement & economics Taxation Mathematical models sug: subj: Overlapping generations model (Economics) Welfare economics Retirement & economics Taxation Mathematical models ab: It is well known that pay-as-you-go retirement programs reduce steady-state welfare and the capital stock in dynamically efficient overlapping generation (OLG) economies. The common two-period OLG model obscures, however, the relationship between the magnitude of these effects and the ages at which taxes are paid and benefits received. Program changes that shift taxes to older workers or benefits to younger retirees have effects similar to reductions in program size, yielding steady-state welfare gains and increases in capital accumulation while imposing transition costs on current generations. This analysis has policy implications for both tax and benefit timing. (JEL H55, E62) Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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