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The Effects of Annuities, Bequests, and Aging in an Overlapping Generations Model of Endogenous Growth Author info | Abstract | Publisher info | Download info | Related research | Statistics Pecchenino, Rowena A
Pollard, Patricia S
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The authors examine the effects of introducing actuarially fair annuity markets into an overlapping generations model of endogenous growth. The complete annuitisation of agents' wealth is not, in general, dynamically optimal; the degree of annuitisation that is dynamically optimal depends nonmonotonically on the expected length of retirement and on the pay-as-you-go social security tax rate. The government has an incentive to restrict the availability of actuarially fair annuities contracts and can often move the economy from a pay-as-you-go to a fully-funded social security system via voluntary contributions to a government sponsored, actuarially fair pension today accompanied by reductions in social security taxes tomorrow. Copyright 1997 by Royal Economic Society.
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Article provided by Royal Economic Society in its journal The Economic Journal .
Volume (Year): 107 (1997)
Issue (Month): 440 (January)
Pages: 26-46
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Handle: RePEc:ecj:econjl:v:107:y:1997:i:440:p:26-46Contact details of provider: Web page: http://www.res.org.uk/ More information through EDIRC
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"The transition from a-pay-as-you-go to a fully-funded Social Security System: is there a role for social insurance? ,"
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1997-022, Federal Reserve Bank of St. Louis.
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Hans Fehr & Christian Habermann, 2008.
"Private Retirement Savings in Germany: The Structure of Tax Incentives and Annuitization ,"
SOEPpapers
133, DIW Berlin, The German Socio-Economic Panel (SOEP).
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