Pay-as-you-go Social Security and the Distribution of Altruistic Transfers
AbstractThis paper studies the impact of an unfunded social security system on the distribution of altruistic transfers in a framework where savings are due to both life cycle and random altruistic motivations. We show that the effect of social security on the distribution of these transfers depends crucially on the strength of the bequest motive in explaining savings behaviour. We measure this strength by the expected weight that individuals attach to the utility of future generations. On the one hand, if the bequest motive is strong, then an increase in the social security tax raises the bequests left by altruistic parents. On the other hand, when the importance of altruism in motivating savings is sufficiently low, the increase in the social security tax could result in a reduction of the bequests left by altruistic parents under some conditions on the attitude of individuals toward risk and on the relative returns associated with private saving and social security. Some implications concerning the transitional effects of introducing an unfunded social security scheme are also discussed. Copyright 2003, Wiley-Blackwell.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Oxford University Press in its journal The Review of Economic Studies.
Volume (Year): 70 (2003)
Issue (Month): 3 ()
Contact details of provider:
Other versions of this item:
- Jordi Caballe & Luisa Fuster, 2003. "Pay-as-you-go Social Security and the Distribution of Altruistic Transfers," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 70(3), pages 541-567, 07.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jordi Caballé & Ana I. Moro-Egido, 2008.
"The Effect of Aspirations, Habits, and Social Security on the Distribution of Wealth,"
Working Papers, Barcelona Graduate School of Economics
352, Barcelona Graduate School of Economics.
- Jordi Caballé & Ana Moro-Egido, 2008. "The Effect of Aspirations, Habits, and Social Security on the Distribution of Wealth," UFAE and IAE Working Papers, Unitat de Fonaments de l'AnÃ lisi EconÃ²mica (UAB) and Institut d'AnÃ lisi EconÃ²mica (CSIC) 761.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Jordi Caballé & Ana I. Moro Egido, 2008. "The Effect of Aspirations, Habits, and Social Security on the Distribution of Wealth," ThE Papers, Department of Economic Theory and Economic History of the University of Granada. 08/02, Department of Economic Theory and Economic History of the University of Granada..
- Alonso-Ortiz, Jorge, 2013. "Taxes, Transfers and the Macroeconomy," MPRA Paper 49569, University Library of Munich, Germany.
- Fang Yang, 2012.
"Social Security Reform with Impure Intergenerational Altruism,"
Discussion Papers, University at Albany, SUNY, Department of Economics
12-01, University at Albany, SUNY, Department of Economics.
- Yang, Fang, 2013. "Social security reform with impure intergenerational altruism," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 37(1), pages 52-67.
- Ana I. Moro-Egido, 2004. "Educational System, Altruism and Inequality in the Distribution of Income," Economic Working Papers at Centro de Estudios Andaluces, Centro de Estudios Andaluces E2004/46, Centro de Estudios Andaluces.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.