Intergenerational Risk Sharing and the Design of Pay-as-you-Go Pension Programs

O. Thogersen

Working Papers from Norwegian School of Economics and Business Administration-

Abstract: Different versions of pay-as-you-go public pension programs may have entirely different effects on the intergenerational distribution of income risk. If the pension benefit is a fixed proportion of previous income, a pay-as-you-go program increases the income risk of all generations. On the other hand, a pay-as-you-go program characterized by a fixed inome tax rate and uncertain pension benefits provides intergenerational risk sharing.

Keywords: RISK; PENSION FUNDS; SOCIAL SECURITY (search for similar items in EconPapers)
JEL-codes: D80 D81 H50 H55 (search for similar items in EconPapers)
Pages: 6 pages
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:fth:norgee:7/96

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