Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94970
Authors: 
Hassler, John
Lindbeck, Assar
Year of Publication: 
1998
Series/Report no.: 
IUI Working Paper 499
Abstract: 
This paper considers the possibility of letting a pay-go pension system mimic a fully funded pension system. Generically, it turns out to be impossible to make a less than fully funded pension system actuarially fair on average. But a non-funded pay-go pension system can provide an actuarially fair implicit return on the margin, which increases economic efficiency. The benefits of this fall entirely on current pensioners as a windfall gain unless compensating transfers are implemented. Such a system can be thought of as a pay-go system that mimics a fully funded pension system in combination with lump transfers to current pensioners from current and future workers.
Subjects: 
Pension systems
Pay-as-you-go
Actuarial
Funding
JEL: 
H50
H55
H60
Document Type: 
Working Paper

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