Feldstein, Martin, (1996), "The Missing Piece in Policy Analysis: Social Security Reform", The Richard T. Ely Lecture, meeting of the American Economic Association, January 5, 1996.  Home/Search   Document Not in Database   Summary   Related Articles   Check

....the well known fact that a compulsory pension system may distort labor supply if the return on pension fees differs from the return on capital markets. In reality, the average implicit rate of return in non funded pension systems is typically lower than the average return on the capital market (Feldstein, 1996 and Auerbach Kotlikoff, 1987) It seems reasonable to argue, however, that labor market distortions are connected the marginal rather than the average return to fees paid. Despite the lower average return, the system could, however, be constructed so that the marginal return to fees paid equals ....

....of course, gets a windfall gain. However, we focus on the risk sharing properties of a pension system in steady state. Certainly, the intergenerational transfers that occur during a transition period after a PAYG pension system is introduced or dismantled may be very large, see, for example Feldstein (1996). The analysis of such transfers is, however, outside the scope of this paper. Table 1 Sources of income under alternative pension systems Pension System Income received when young Pension received when old Interest on private savings Implicit return on pension fees Fixed fee (1 t)w t (1 n t 1 ....

Feldstein, Martin, (1996), "The Missing Piece in Policy Analysis: Social Security Reform", The Richard T. Ely Lecture, meeting of the American Economic Association, January 5, 1996.

....income and the link between marginal benefits and contributions is typically not perfect; hence actually existing compulsory pension systems are usually not actuarially fair. In particular, the implicit rate of return in non funded systems is typically lower than the return on a market portfolio (Feldstein, 1996 and Auerbach Kotlikoff, 1987) 1 . Such a discrepancy can arise also if there is no redistribution between individuals, that is, also in models with a representative individual. Due to these three types of distortions, it may not be possible to construct a fiscally neutral pension system in ....

....Such an income change can, however, hardly be a rationale for a compulsory system even if it would in fact induce the individual to rearrange his intertemporal consumption profile. 4 the median financial holdings of US households with heads between 55 and 65 years old was only 8,300 in 1991 (Feldstein, 1996); the corresponding figure for Sweden in 1990 was 17600 (expressed 1992 consumer prices) and the assets of the first quartile was as low as SEK 5400 (Ekman, 1996) These figures indicate that most households in these age groups have financial holdings enough for only a few months consumption. ....

Feldstein, M. (1996), "The Missing Piece in Policy Analysis: Social Security Reform", The Richard T. Ely Lecture to the American Economic Associations meeting, January 5, 1996.

....reconstruction of the whole economy. In this context there is a heated debate as to whether a revision of the common social security type found in Europe, i.e. a pay as you go system, is adequate or if one has to make a radical shift towards mandatory retirement saving schemes (World Bank 1994, Feldstein 1996, Diamond 1996, Siebert 1998) Strengthening Social Security Systems in Rural Areas of Developing Countries 19 19 The overview of the tremendous problems facing state based social security schemes clearly demonstrates the need for alternatives. We will therefore investigate whether market based ....

Feldstein, M. (1996): The Missing Piece in Policy Analysis: Social Security Reform. American Economic Review 86 [2], pp.1 -- 14.

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Feldstein, Martin (1996), The Missing Piece in Policy Analysis: Social Security Reform, American Economic Review, s. 1-14.

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Feldstein, M.S., 1996, The Missing Piece in Policy Analysis: Social Security Reform, American Economic Review, 86, 1-14.

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