Optimal Redistributive Pensions and the Cost of Self-Control

We examine how the introduction of self-control preferences influences the trade-off between two fundamental components of a public pension system: the contribution rate and its degree of redistribution. The pension regime affects individuals' welfare by altering how yielding to temptation (i.e. not saving, or saving less) is attractive. We show that proportional taxation increases the cost of self-control, and that this adverse effect is more acute when public pensions become more redistributive

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Year of publication:	2014
Authors:	St-Amant, Pier-Andre
Other Persons:	Garon, Jean-Denis (contributor)
Publisher:	[2014]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Umverteilung \| Redistribution \| Gesetzliche Rentenversicherung \| Public pension system \| Altersvorsorge \| Retirement provision \| Optimale Besteuerung \| Optimal taxation \| Kosten \| Costs

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