EconPapers    
Economics at your fingertips  
 

Can and Should a Pay-As-You-Go Pension System Mimic a Funded System?

John Hassler () and Assar Lindbeck

No 499, Working Paper Series from Research Institute of Industrial Economics

Abstract: This paper considers the possibility of letting a pay-go pension system mimic a fully funded pension system. Generically, it turns out to be impossible to make a less than fully funded pension system actuarially fair on average. But a non-funded pay-go pension system can provide an actuarially fair implicit return on the margin, which increases economic efficiency. The benefits of this fall entirely on current pensioners as a windfall gain unless compensating transfers are implemented. Such a system can be thought of as a pay-go system that mimics a fully funded pension system in combination with lump transfers to current pensioners from current and future workers.

Keywords: Pension systems; Pay-as-you-go; Actuarial; Funding (search for similar items in EconPapers)
JEL-codes: H50 H55 H60 (search for similar items in EconPapers)
Pages: 18 pages
Date: 1998-06-04
New Economics Papers: this item is included in nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://swopec.hhs.se/iuiwop/papers/iuiwop0499.pdf.zip (application/pdf)
https://swopec.hhs.se/iuiwop/papers/iuiwop0499.pdf (application/pdf)
https://swopec.hhs.se/iuiwop/papers/iuiwop0499.ps.zip (application/postscript)
https://swopec.hhs.se/iuiwop/papers/iuiwop0499.ps (application/postscript)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0499

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson ().

 
Page updated 2020-07-25
Handle: RePEc:hhs:iuiwop:0499