EconStor >
Eberhard Karls Universität Tübingen >
Wirtschaftswissenschaftliche Fakultät, Universität Tübingen >
Tübinger Diskussionsbeiträge, Universität Tübingen >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/47529
  
Title:Privatization of public pensions in Germany: Who gains and how much? PDF Logo
Authors:Fehr, Hans
Issue Date:1998
Series/Report no.:Tübinger Diskussionsbeiträge 148
Abstract:This paper examines the distributional and efficiency effects of pension privatization in Germany. Starting from a benchmark that refects the current unfunded pension system, a fully funded system is introduced. The accrued benefits of the old system are financed by alternative tax combinations as well as deficit increases. The quantitative analysis is based on an Auerbach-Kotliko type simulation model that distinguishes between five lifetime income classes within each age cohort. The simulations reveal a clear trade-off between the efficiency and equity aspects of alternative financing schemes. While consumption taxes are the most efficient financing instrument, they also undermine intra- and intergenerational equity. Phasing-out the unfunded system on the other hand not only dampens the income redistribution across and within generations, but also reduces the efficiency gains dramatically.
Persistent Identifier of the first edition:urn:nbn:de:bsz:21-opus-21484
Document Type:Working Paper
Appears in Collections:Tübinger Diskussionsbeiträge, Universität Tübingen

Files in This Item:
File Description SizeFormat
251236145.pdf237.91 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/47529

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.