Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/30564 
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dc.contributor.authorFehr, Hansen
dc.contributor.authorKindermann , Fabianen
dc.date.accessioned2009-09-01-
dc.date.accessioned2010-05-14T08:22:11Z-
dc.date.available2010-05-14T08:22:11Z-
dc.date.issued2009-
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
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x2724en
dc.subject.jelH55en
dc.subject.jelJ26en
dc.subject.ddc330en
dc.subject.keywordindividual retirement accountsen
dc.subject.keywordannuitiesen
dc.subject.keywordstochastic general equilibriumen
dc.subject.keywordhyperbolic consumersen
dc.subject.stwAlterssicherungen
dc.subject.stwRentenfinanzierungen
dc.subject.stwPrivate Rentenversicherungen
dc.subject.stwKonsumentenverhaltenen
dc.subject.stwZeitpräferenzen
dc.subject.stwVersicherungspflichten
dc.subject.stwWohlfahrtseffekten
dc.subject.stwAllgemeines Gleichgewichten
dc.subject.stwOverlapping Generationsen
dc.subject.stwTheorieen
dc.titlePension funding and individual accounts in economies with life-cyclers and myopes-
dc.typeWorking Paperen
dc.identifier.ppn607960345en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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