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The Distribution and Redistribution of Income in the Presence of Pensions

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  • Álvaro Forteza Galceran

Abstract

In this document, I present a conceptual framework for the analysis of the distribution and redistribution of income in the presence of pensions. The paper makes specific recom- mendations on the controversial issue of whether pensions should be treated as transfers or “deferred income”. I show that most pension programs have both dimensions in different degrees and present a proposal to deal with them in a unified framework. The proposal has specific recommendations in terms of accounting and counterfactuals. Using some simple examples, I show that usual accounting and “nonbehavioral” assumptions —particularly regarding non-labor income— may be very misleading.

Suggested Citation

  • Álvaro Forteza Galceran, 2023. "The Distribution and Redistribution of Income in the Presence of Pensions," Documentos de Trabajo (working papers) 0323, Department of Economics - dECON.
    • Handle: RePEc:ude:wpaper:0323
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    File URL: https://hdl.handle.net/20.500.12008/39016
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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