This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review
  4. May 2013
  5. Optimal Pension Systems with Simple Instruments

Optimal Pension Systems with Simple Instruments

Download Full Text PDF

Abstract

We analyze optimal pension systems relying on simple policy instruments in a lifecycle environment which admits endogenous decisions of how much to work as well as when to retire. The optimality in this context means the highest welfare that can be achieved within a restricted set of instruments, while keeping the total cost of the pension system unchanged. The policy instruments we consider are the optimized retirement benefit functions modeled after a stylized version of the current US Social Security.

Citation

Golosov, Mikhail, Ali Shourideh, Maxim Troshkin, and Aleh Tsyvinski. 2013. "Optimal Pension Systems with Simple Instruments." American Economic Review, 103 (3): 502-07. DOI: 10.1257/aer.103.3.502

Additional Materials

JEL Classification

  • H55 Social Security and Public Pensions