Trade-offs in Means Tested Pension Design
The means-testing of age pension programs allows governments to control the receipt of pension benefits (extensive margin) and the benefit level (intensive margin). We investigate how the presence of the extensive margin influences the trade-off between protecting the poorer elderly and the economic costs of distorting incentives to work and save of young individuals. The means-test effect via the extensive margin improves the insurance aspect but introduces opposing impacts on incentives that...[Show more]
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|Source:||Journal of Economic Dynamics and Control|
|01_Tran_Trade-offs_in_Means_Tested_2014.pdf||1.15 MB||Adobe PDF||Request a copy|
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