The Crisis of Germany's Pension Insurance System and How It Can Be Resolved
AbstractThe paper discusses the options for a reform of the German pension system using a model developed at CES for the German Council of economic advisors to the Federal Ministry of Economics and Research. It is argued that the German pay-as-you-go-system is efficient in a present value sense but will nevertheless need the support of a funded system to avoid a financial crisis. The paper investigates the possibility of introducing obligatory private savings at a variable rate where the time path of the savings rate is chosen so as to stabilize the sum of this rate and the pay-as-you-go contribution rate, given the time path of pensions as defined in the present system.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7304.
Date of creation: Aug 1999
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Other versions of this item:
- Sinn, Hans-Werner, 1999. "The Crisis of Germany's Pension Insurance System and How It Can Be Resolved," CEPR Discussion Papers 2175, C.E.P.R. Discussion Papers.
- Hans-Werner Sinn, 1999. "The Crisis of Germany's Pension Insurance system and How it Can be Resolved," CESifo Working Paper Series 191, CESifo Group Munich.
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-09-17 (All new papers)
- NEP-EEC-1999-09-17 (European Economics)
- NEP-IAS-1999-09-17 (Insurance Economics)
- NEP-PUB-1999-09-17 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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