Optimal Pension Systems with Simple Instruments
- (pp. 502-07)
AbstractWe 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.
CitationGolosov, 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
- H55 Social Security and Public Pensions