This paper provides the first estimate of the actuarial balance of the Spanish contributory pension system for the old age contingency, based on official data. The novel entry in the balance sheet, named "Contribution Asset" or "Hidden Asset", is at the centre of the theoretical discussion. A...

When behavioral biases have varying sizes, and the State seeks to correct behavior through compulsion, the question is how to design optimal compulsion. One argument is that the amount of compulsion should rise with the size of the bias to be 'cured'. A contrary argument is that since compulsion...

This paper provides the first estimate of the actuarial balance of the Spanish contributory pension system for the old age contingency, based on official data. The novel entry in the balance sheet, named “Contribution Asset” or “Hidden Asset”, is at the centre of the theoretical...

When behavioral biases have varying sizes, and the State seeks to correct behavior through compulsion, the question is how to design optimal compulsion. One argument is that the amount of compulsion should rise with the size of the bias to be “cured”. A contrary argument is that since...

When behavioral biases have varying sizes, and the State seeks to correct behavior through compulsion, the question is how to design optimal compulsion. One argument is that compulsion should rise with the size of the bias to be “cured”. A contrary argument is that since compulsion affects...

Noncontributory subsidies for the old poor (first-pillar pensions) affect the welfare of hundreds of millions around the world. Their benevolent rationale is to redistribute progressively, subject to efficiency considerations. This paper focuses on a critical efficiency issue: first pillars may...