Socially optimal contribution rate and cap in a proportional (DC) pension system
Autor(a) principal: | |
---|---|
Data de Publicação: | 2015 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/15733 |
Resumo: | In our model, the government operates a mandatory proportional (DC) pension system to substitute for the low life-cycle savings of the lower-paid myopic workers, while maintaining the incentives of the higher-paid far-sighted ones in contributing to the system. The introduction of an appropriate cap on pension contribution (or its base)—excluding the earnings above the cap from the contribution base—raises the optimal contribution rate, helping more the lower-paid myopic workers and reserving enough room for the saving of higher-paid far-sighted ones. The social welfare is almost independent of the cap in a relatively wide interval but the maximal welfare is higher than the capless welfare by 0.3–4.5 %. |
id |
RCAP_70e9eaf95fbeda02793d647e63b584e5 |
---|---|
oai_identifier_str |
oai:www.repository.utl.pt:10400.5/15733 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
Socially optimal contribution rate and cap in a proportional (DC) pension systemProportional (DC) pensionsContribution rateContribution capMaximum for taxable earningsIn our model, the government operates a mandatory proportional (DC) pension system to substitute for the low life-cycle savings of the lower-paid myopic workers, while maintaining the incentives of the higher-paid far-sighted ones in contributing to the system. The introduction of an appropriate cap on pension contribution (or its base)—excluding the earnings above the cap from the contribution base—raises the optimal contribution rate, helping more the lower-paid myopic workers and reserving enough room for the saving of higher-paid far-sighted ones. The social welfare is almost independent of the cap in a relatively wide interval but the maximal welfare is higher than the capless welfare by 0.3–4.5 %.Springer VerlagRepositório da Universidade de LisboaSimonovits, András2018-06-27T12:33:21Z2015-122015-12-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/15733engSimonovits, András (2015). "Socially optimal contribution rate and cap in a proportional (DC) pension system". Portuguese Economic Journal, 14(1-3):45-631617-982X (print)10.1007/s10258-015-0107-0metadata only accessinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-05-28T01:30:54Zoai:www.repository.utl.pt:10400.5/15733Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:01:19.805174Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Socially optimal contribution rate and cap in a proportional (DC) pension system |
title |
Socially optimal contribution rate and cap in a proportional (DC) pension system |
spellingShingle |
Socially optimal contribution rate and cap in a proportional (DC) pension system Simonovits, András Proportional (DC) pensions Contribution rate Contribution cap Maximum for taxable earnings |
title_short |
Socially optimal contribution rate and cap in a proportional (DC) pension system |
title_full |
Socially optimal contribution rate and cap in a proportional (DC) pension system |
title_fullStr |
Socially optimal contribution rate and cap in a proportional (DC) pension system |
title_full_unstemmed |
Socially optimal contribution rate and cap in a proportional (DC) pension system |
title_sort |
Socially optimal contribution rate and cap in a proportional (DC) pension system |
author |
Simonovits, András |
author_facet |
Simonovits, András |
author_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Simonovits, András |
dc.subject.por.fl_str_mv |
Proportional (DC) pensions Contribution rate Contribution cap Maximum for taxable earnings |
topic |
Proportional (DC) pensions Contribution rate Contribution cap Maximum for taxable earnings |
description |
In our model, the government operates a mandatory proportional (DC) pension system to substitute for the low life-cycle savings of the lower-paid myopic workers, while maintaining the incentives of the higher-paid far-sighted ones in contributing to the system. The introduction of an appropriate cap on pension contribution (or its base)—excluding the earnings above the cap from the contribution base—raises the optimal contribution rate, helping more the lower-paid myopic workers and reserving enough room for the saving of higher-paid far-sighted ones. The social welfare is almost independent of the cap in a relatively wide interval but the maximal welfare is higher than the capless welfare by 0.3–4.5 %. |
publishDate |
2015 |
dc.date.none.fl_str_mv |
2015-12 2015-12-01T00:00:00Z 2018-06-27T12:33:21Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/15733 |
url |
http://hdl.handle.net/10400.5/15733 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Simonovits, András (2015). "Socially optimal contribution rate and cap in a proportional (DC) pension system". Portuguese Economic Journal, 14(1-3):45-63 1617-982X (print) 10.1007/s10258-015-0107-0 |
dc.rights.driver.fl_str_mv |
metadata only access info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
metadata only access |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Springer Verlag |
publisher.none.fl_str_mv |
Springer Verlag |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799131102122606592 |