Given a compulsory pension system, we calculate the optimal ratio of marginal contributions to benefits. This ratio is independent of the labor supply elasticity, it increases in the rate of return in the pension system and decreases in the government’s discount rate.
Economics Letters
Optimal Actuarial Fairness in Pension Systems – A Note
Journal Article
Reference
Hassler, John and Assar Lindbeck (1997). “Optimal Actuarial Fairness in Pension Systems – A Note”. Economics Letters 55(2), 251–255. doi.org/10.1016/S0165-1765(97)00065-7
Hassler, John and Assar Lindbeck (1997). “Optimal Actuarial Fairness in Pension Systems – A Note”. Economics Letters 55(2), 251–255. doi.org/10.1016/S0165-1765(97)00065-7
Authors
John Hassler,
Assar Lindbeck
