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dc.contributor.authorFehr, Hansen_US
dc.contributor.authorKindermann , Fabianen_US
dc.date.accessioned2009-09-01en_US
dc.date.accessioned2010-05-14T08:22:11Z-
dc.date.available2010-05-14T08:22:11Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/30564-
dc.description.abstractThe present paper studies the growth and efficiency consequences of pension funding with individual retirement accounts in a general equilibrium overlapping generations model with idiosyncratic lifespan and labor income uncertainty. We distinguish between economies with rational and hyperbolic consumers and compare the consequences of voluntary and mandatory retirement plans. Three major findings are derived in our study: First, we quantify the commitment effect of social security for myopic individuals by roughly 1 percent of aggregate resources. It is possible to recapture this commitment technology in IRAs, if those are annuitized. Second, despite the fact that our consumers have an operative bequest motive, the welfare gain from the (implicit) longevity insurance of the pension system is significant and amounts to roughly 0.5 percent of aggregate resources. However, mandatory annuitization reduces unintended bequests so that future generations are significantly hurt. Finally, our results highlight the importance of liquidity effects for social security analysis. These efficiency gains are only attainable if accounts are voluntary and not mandatory.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 2724en_US
dc.subject.jelH55en_US
dc.subject.jelJ26en_US
dc.subject.ddc330en_US
dc.subject.keywordindividual retirement accountsen_US
dc.subject.keywordannuitiesen_US
dc.subject.keywordstochastic general equilibriumen_US
dc.subject.keywordhyperbolic consumersen_US
dc.subject.stwAlterssicherungen_US
dc.subject.stwRentenfinanzierungen_US
dc.subject.stwPrivate Rentenversicherungen_US
dc.subject.stwKonsumentenverhaltenen_US
dc.subject.stwZeitpräferenzen_US
dc.subject.stwVersicherungspflichten_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwAllgemeines Gleichgewichten_US
dc.subject.stwOverlapping Generationsen_US
dc.subject.stwTheorieen_US
dc.titlePension funding and individual accounts in economies with life-cyclers and myopesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn607960345en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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