A Note on Resource Testing and Temptation

Cagri Kumru, John Piggott and Athanasios C. Thanopoulos
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Athanasios C. Thanopoulos: University of Athens

Working Papers from University of Michigan, Michigan Retirement Research Center

Abstract: This study analyzes the relative performance in terms of welfare of the current U.S. PAYG system compared to an array of cost equivalent alternative specifications of means-tested pension programs. We conduct our analysis under two different settings. While in the first setting, individuals have standard preferences, in the second setting individuals have self-control preferences. We show that the implications of the reform substantially differs across the two settings.

Pages: 19 pages
Date: 2015-11
New Economics Papers: this item is included in nep-exp and nep-ger
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